By Andre Jones
Boxer Floyd Mayweather, having acknowledged owing the IRS taxes from 2015, has petitioned the federal government for a reprieve until he can amass the cash necessary to pay off his debt.
According to the Chicago Tribune, five-division world champion Floyd “Money” Mayweather is on the hook for $22.2 million in taxes for 2015. Though he doesn’t dispute this, Mayweather has filed a petition with the U.S. Tax Court to temporarily suspend collection activities until after his bout with mixed martial artist Conor McGregor on August 26th in Las Vegas.
“Although the taxpayer has substantial assets, those assets are restricted and primarily illiquid, “the petition read, “The taxpayer has a significant liquidity event scheduled in about 60 days from which he intends to pay the balance of the 2015 tax liability due and outstanding,”
The petition also requested installment payments. Mayweather’s team argued, “Denying the taxpayer a short-term installment agreement under these circumstances is inconsistent with the principle of voluntary compliance and would be unnecessarily punitive.”
However, the IRS is having none of it. In a determination notice attached to the petition, the IRS rejected an in-house appeal designed to stop an imminent collection action for the delinquent tax liability.
While Mayweather’s camp argues liquidity as a mitigating factor of the petition, the IRS does not share the same respect for liquidity in terms of barriers to collection actions. According to the IRS, Mayweather currently has the assets to “fully or partially pay the liability.” The collection action – which many of us know so well – would come in the form of an intent to levy. In other words, the Feds expect Mayweather, like many others before him, to liquidate assets to pay his back taxes.
The August 26th fight is expected to net Mayweather over $100 million and could go as high as $400 million, depending on various factors. The Mayweather-McGregor bout will be broadcast as a pay-per-view event to the tune of $89.95 per view and $99.95 for high definition viewing.