Boxing champion Floyd ‘Money’ Mayweather steps into the ring with IRS over $7.3M tax lien. Juke your own tax knockout

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1996 Olympic bronze medalist Floyd "Money" Mayweather Jr. built one of the most lucrative careers in sports history, reportedly earning more than $1 billion (1) over the course of his boxing career. Now, the retired champion is facing questions about his taxes.

According to a recent filing first reported by Business Insider (2), the IRS has placed a $7.3 million federal tax lien against Mayweather for unpaid taxes tied to the 2018 and 2023 tax years.

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The lien, filed in Las Vegas where Mayweather owns property, allows the federal government to claim an interest in certain assets until the outstanding tax debt is resolved. An attorney for Mayweather declined to comment on the filing.

It's not the first time (3) the undefeated boxer has found himself in a dispute with the IRS.

U.S. Tax Court judge Emin Toro ordered (4) Mayweather to pay roughly $5.5 million in tax deficiencies and another $1.1 million in penalties related to his 2017 taxes in 2023. Mayweather also previously reached a settlement with the IRS over approximately $22.2 million in taxes connected to 2015.

Here's how it breaks down, and what you can learn about your own tax situation from Mayweather's sparring match with the government.

What is a federal tax lien?

Tax liens are legal claims against your property or assets when you neglect or fail to pay your tax debts. The lien is intended to protect the government's interest in your property (real estate, valuables and financial assets).

A federal tax lien is one of the IRS's most powerful collection tools. When a taxpayer fails to pay a tax debt after receiving a notice and demand for payment, the government files the lien publicly, meaning it's hosted as a public record.

In Mayweather's case, the lien is registered with the Clark County Recorder's Office (5).

A lien doesn't necessarily mean the IRS is immediately seizing assets. However, it can complicate borrowing, refinancing, selling property and other financial transactions until the debt is resolved.