Knowledge is protection when the IRS is involved. I'm Darrin Mish, a tax attorney in Tampa with 32 years of experience representing taxpayers nationwide. Here's what I want you to understand.<\/p>\n
To boxing fans, Manny Pacquiao would need no introduction.\u00a0 He is a Filipino fighter who holds the world\u2019s record for the most world titles across different weight divisions (8).\u00a0 But the IRS claims he owes them $18 million and they plan to collect when Pacquiao next fights on American soil in what is billed to be the richest fight in boxing history.\u00a0 The boxing world has been clamoring for a fight between Pacquiao and the undefeated Floyd Mayweather and the two boxers have finally agreed terms and will lock horns in Las Vegas on May 2.<\/p>\n
But Pacquiao has another fight on his hands \u2013 with the IRS and its Philippines counterpart, the Philippines Bureau of Inland Revenue.\u00a0 The Philippines government filed a tax evasion case against Pacquiao for $75 million.<\/a> \u00a0This is in addition to the $18.3 million federal tax lien the IRS has lodged against him for allegedly failing to pay taxes for 2006 through 2010<\/a>. \u00a0But Pacquiao claims that a treaty between the US and the Philippines prevents his money from being taxed twice.<\/p>\n Does Pacquiao have a case?\u00a0 There are indications that he does.\u00a0 Unlike an ordinary American citizen, Pacquiao does not derive any benefit from the US government from the tax money that he pays.\u00a0 He does not have a Social Security number, he is not eligible for Medicare or Medicaid, his five children will not money from the US Department of Education to attend school and he does not use any facilities like roads or government infrastructure in the US.\u00a0 In other words, he pays 39.5% of his earnings as taxes to Uncle Sam simply because he fights in America.<\/p>\n That is the problem Pacquiao faces with taxes.<\/p>\n