Paul Gift, Bloody Elbow’s analytics and business writer, has an incredibly detailed report on some trouble that UFC Hall of Famer and upcoming Bellator MMA headliner Royce Gracie appears to have gotten himself into. The most famous member of the legendary Gracie family has been in a mess of tax problems with the U.S. Internal Revenue Service (IRS) since 2012, when they asked for information about his foreign bank accounts and foreign investments. It’s not known what exactly what tipped the IRS off, but they initiated an investigation into Gracie, alleging he was cheating on his taxes.
Gift’s article is a must-read with tons of details, but here are the basics:
- Investigating IRS agent Gloria Ybarra believes over $3 million was wired into foreign accounts to hide income from them.
- Royce and his wife, a podiatrist, claimed the Earned Income Credit, which is for lower income working families, which the foreign accounts are in direct conflict with.
- The Gracies claimed about $38,000 in taxable income in 2007 and losses of about $66,000 to $204,000 from 2008 to 2012. This resulted in tax liabilities of $3,925 or less.
- The IRS is saying that $1,149,949.25 in back taxes and penalties are owed.
- Gracie’s wife is using an “innocent spouse” defense that her control over the company that handles their finances is in conflict with.
Royce Gracie fights Ken Shamrock in a rubber match that will serve as the main event of Bellator 149 on February 19th.
