Floyd Mayweather owes back taxes from 2015 and he’s requested a payment agreement with the IRS until after he cashes in on his upcoming fight with Conor McGregor.
Mayweather filed a petition with the United States Tax Court asking for leniency because while he has ‘substantial’ funds, the money is ‘restricted and primarily illiquid’. According to Law360.com, Mayweather first filed the petition on July 5.
In the petition, Mayweather asked for a short-term payment installment until after he receives additional funds from his upcoming fight with McGregor on Aug. 26.
“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,” Mayweather’s attorneys wrote in the petition.
The bout between Mayweather and McGregor is expected to generate enormous revenue for both competitors involved with the super fight in August.
Estimations have rocketed to north of $200 million in profit for Mayweather for the fight, regardless of the outcome of the matchup with the UFC lightweight champion.
Obviously, Mayweather is banking on that money to help stave off the IRS, who is seeking payment for the 2015 back taxes.
“Denying the taxpayer a short-term installment agreement under these circumstances is inconsistent with the principle of voluntary compliance and would be unnecessarily punitive,” Mayweather’s petition stated.
“The government will not be prejudiced by agreeing to the requested short-term installment agreement as the current assets will not be diminished during the installment period.”
Meanwhile, the IRS has argued that Mayweather has the ability to pay the back taxes in full or at least partially based on his current wealth. Mayweather being able to pay the taxes could be funded by “selling property, withdrawing cash from other accounts or taking out a loan”.
Throughout his career, Mayweather has made hundreds of millions of dollars from boxing including approximately $220 million for his 2015 fight against Manny Pacquiao.
According to Law360, the IRS had already threatened to collect the back taxes with a levy on Mayweather’s assets.
Mayweather is currently just one day away from coming face to face with McGregor as the two fighters start a four city tour to promote their fight starting on Tuesday in Los Angeles.