There are two things you can depend on: sports and taxes. The latter is much less desired than the former. Unsurprisingly, athletes have the same aversion to paying their taxes as the normal person does. But no matter our class or status, tax season rolls around for every individual.
Most athletes earn high salaries for short windows of time, and typically they fail to become financially savvy before retirement. The Sportster states that an estimated “78% of athletes file bankruptcy or are under financial stress within two years of retirement.”
Here is a short compilation of those struggling athletes:
NFL Hall of Fame Linebacker, Lawrence Taylor spent years accruing tackles and $120,000 worth of tax debt. In 2000, Taylor suffered 90 days of house arrest for filing a false tax return. He failed to pay over $83,000 in taxes between 1991 and 1993. Additionally, Taylor admitted to filing a false tax return in 1990. He had failed to pay over $40,000 in taxes.
Although having been the all-time leader in hits in Major League Baseball, Pete Rose never received induction into the Baseball Hall of Fame. This was because in 1989 the MLB banned Rose from the association for placing bets on games. However, the pinnacle part of his infamy is his $500,000 debt to the IRS, and for filing false tax returns from 1984-1988 and in 1998. To avoid a prison sentence, Rose negotiated a settlement.
Professional Golfer, John Daly has committed enough personal scandals to earn him a lifetime in the spotlight. Regarding money problems, he gambled away an estimated $57 million. Daly found himself in extensive trouble with the IRS in 2010. For Daly’s 2007 and 2008 taxes, he received a federal income tax lien of $1,050,733.
Former Heavyweight Boxing Champion, Mike Tyson may have led a successful boxing career, but he endured a tumultuous life, especially in regards to finances. In 2005, after earning over $300 million Tyson filed bankruptcy and fought with the IRS to pay off debts estimated at $23 million. To his great relief, in April 2014, Tyson learned that the IRS had forgiven him of $2 million in tax debt.
IndyCar Champion, Helio Castroneves took home 23 career wins. The biggest struggle of his career took place in the courtroom over six counts of tax evasion. Castroneves pled not guilty in the wake of the IRS claiming he owed $2.3 million in taxes. The charges were based on a contract he signed with Penske Racing after the death of the driver, Greg Moore. Two years after the IRS accused Castroneves, the court acquitted him on all six counts of evasion.
Whether you owe money to the IRS or you have a State tax debt, our staff of Enrolled Agents and Tax Professionals can help you! We have over 50 years of experience negotiating with the IRS in all 50 States.
Call The Tax Defense Group today!