02 Mar Baseball Tax Evasion – The Darryl Strawberry Case
Many of you know who Darryl Strawberry is. But for those of you who don’t, he is a famous baseball right fielder who played a total of 17 seasons in the MLB.
During the 1980s and early 1990s, he was known as the most feared slugger in the sport of baseball. His home runs were nothing short of miracles, and he was often compared to the legend, Ted Williams.
Together with the New York Mets and the New York Yankees, he won four World Series championships, and he was an All-Star player for eight years in a row, from 1984 to 1991. Darryl was also inducted into the New York Mets Hall of Fame.
However, what we are here to talk about today is not his unimaginable baseball skills and awards, but his tax evasion cases. Yes, plural. With that in mind, let’s take a look at what happened, and more importantly, how much the IRS took once they came knocking at his door:
The Darryl Strawberry Tax Evasion Story
Some 30 years ago, Darryl Strawberry was at his prime, and his success seemed never-ending. However, off the field, his life was much different. Several issues troubled him, from substance abuse and cancer, all the way to marital problems. And that wasn’t all; he also had legal issues.
One of those legal problems happened in 1994 when he was charged and later indicted for federal tax evasion linked to the income he made from memorabilia and autographs. The case dragged on for about a year, but in the end, he was sentenced to pay $350,000 in taxes and to a six-month-long house arrest.
But that wasn’t all, and the IRS would become his mortal enemy once again many years later. In 2007, it came to light that he owed debts for the years 1989, 1990, 2003, and 2004.
Naturally, the IRS wanted to get what they were owed, so the Federal Government started a court case against the famous baseball star once again. They sued him to collect nearly half a million dollars in unpaid taxes. Most of the money was from his eight All-Star and two World Series championships, unlike the first time.
In 2008, when the case was concluded, Darryl agreed to pay the IRS around $430,000 in back taxes, interests, and fees for the years 1989 and 1990.
However, what’s more interesting is how they collected the money. The IRS started an auction for Darryl Strawberry’s Mets annuity. It was a unique event according to the IRS, and it was one that eventually became very lucrative for the dreaded agency.
The IRS set a minimum for the auction at $550,000, but in the end, they pocketed more than a million dollars for an annuity that was worth around $1.28 million to them. Naturally, the anonymous new owner of Darryl’s annuity went home with some $2 million, which he was set to get in monthly checks of almost $9,000 for 18+ years.
In the end, it was a good deal for everyone involved. Well, except for Darryl Strawberry! But, it goes to show that you shouldn’t try to evade taxes. So, don’t get into trouble with the IRS, but if you do, you can always contact Golden Tax Relief because we know that not all troubles with the IRS should go in the IRS’s favor! Some can go in your favor, with the right help.