Early this morning, Bloody Elbow learned that a Floyd J. Mayweather recently filed a lawsuit in U.S. Tax Court against the U.S. Internal Revenue Service (IRS).
In past experiences, U.S. Tax Court documents have not been electronically available and have taken more than a week to obtain. But when boxing’s all-time great is the apparent principal, things move quickly.
David Greisman of BoxingScene.com reports that Mayweather still owes federal taxes for 2015 and is petitioning the U.S. Tax Court for an installment agreement, specifically citing what appears to be his scheduled Aug. 26 clash with MMA superstar Conor McGregor as a “significant liquidity event” from which he intends to pay the remaining balance.
Boxing Scene cites a Law360 report describing the apparent dispute between Mayweather and the IRS. “The agency said that Mayweather had various options available … including by selling property, withdrawing cash from other accounts or taking out a loan.”
In other words, Mayweather argues he’s too illiquid to immediately pay his 2015 taxes while the IRS believes some of his assets could be converted into cash or Mayweather could take out a loan to pay what he owes.
2015 is the year Mayweather reportedly earned $220-230 million for defeating Manny Pacquiao in what was billed as boxing’s Fight of the Century. Once the McGregor clash takes place towards the end of the summer, Mayweather will now have to pay taxes on a possible $400 million in earnings as well as cover his past IRS debts.
Paul covers MMA business and analytics for Bloody Elbow. Follow him @MMAanalytics.