By Erwin Lastimosa
Manny Pacquiao has been a world title holder spanning many different weightclasses. The vast majority of his boxing matches in recent years have taken place in the United States. As such, his income from these boxing matches is taxable in the U.S. and he must comply with IRS law (substantial presence test).
The United States is very strict in it’s IRS tax laws and incorrect reporting of income is subject to a IRS audit. The IRS law covers any individual deriving income in the U.S. they must file a proper tax return. Some people suggested that Manny Pacquio is trying to get tax relief by training outside of the United States. He is not avoiding the IRS, he just avoiding paying extra IRS taxes.
IRS help is systematically provided on any questions regarding IRS law or IRS audit, but it is advisable for an individual in Manny Pacquiao’s situation to consult tax attorneys specializing in IRS law and IRS audit, especially on complicated or difficult interpretation of the IRS law or in case of IRS audit where IRS help is no longer applicable.
In the case of Manny Pacquiao it is not a very complicated matter. It is just the compliance of substantial presence test usually applicable is the amount of income taxes that Pacquiao should pay under the IRS law.
How an individual can be considered a U.S. resident for tax purposes depending on his physical presence in the U.S. refer to IRS law.
Pacquiao fights are one of the highest Vegas boxing ticket sales. The boxing match tickets are always selling very fast whenever the Pacman has a up coming fight scheduled. The moment a live boxing match is scheduled, featuring Pacquiao the boxing machine from the Philippines, tickets quickly sell out. In fact the Pacquiao tickets are nearly sold out for his upcoming fight. There are no longer any cheap boxing tickets available for his fight with Miguel Cotto on November 14.
Vegas boxing tickets are available months earlier whenever the boxing match involves Manny Pacquiao. The same as a Mayweather Ticket or De La Hoya Ticket. These superstar names make Vegas boxing ticket prices high and their obligation to follow IRS law should not be ignored. So you can see why Manny trained outside of the the U.S. to avoid tax problems not the IRS.
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