Professional boxer Manny Pacquiao has reportedly been informed that he owes millions of dollars in IRS back taxes. The IRS is alleging that Mr. Pacquiao owes the government $18,313,668.79 for unpaid taxes for tax years 2006, 2007, 2008, 2009, and 2010. More specifically, this is how Mr. Pacquiao’s IRS back taxes allegedly break down:
Mr. Pacquiao was reportedly well paid for several big fights during these years. He is also on Forbes’ 2013 list of top-paid athletes.
Mr. Pacquiao’s Tax Problems Aren’t Just in the United States
While news has recently broken about Mr. Pacquiao’s alleged tax debt in the United States, this is not the first time that a government has made back-tax allegations against him. In November 2013, Yahoo Sports reported that the government of the Philippines was going after Mr. Pacquiao for about $50 million in unpaid taxes for tax years 2008 and 2009. Mr. Pacquiao allegedly told the Philippine government that he did not need to pay taxes in his home country because he had paid taxes in the United States. The United States and the Philippines have an agreement that prevents double taxation. The Philippine government claimed that Mr. Pacquiao did not provide the government with appropriate records of such payment, and Philippine officials have allegedly frozen his bank accounts and put a lien on his property.
Help Is Available for Those Who Owe Back Taxes
If you owe back taxes (even in lesser amounts than Mr. Pacquiao!), then it is important to know your rights. Please read our FREE blog post, “Alternatives for Oklahoma Taxpayers Who Can’t Pay Back Taxes in Full” for more information.