Don't you love the IRS...........

jwharv · #1 08-09-2007, 08:05 AM

Mets fan could face big tax bill over Bonds' home run ball
By MARCUS WOHLSEN, Associated Press Writer
August 8, 2007

SAN FRANCISCO (AP) -- Before he celebrates his windfall, the New York Mets fan who emerged from a violent scrum clutching Barry Bonds' record-setting home run ball should probably call his accountant.

As soon as 21-year-old Matt Murphy snagged the valuable piece of sports history Tuesday night, his souvenir became taxable income in the eyes of the Internal Revenue Service, according to experts.

"It's an expensive catch," said John Barrie, a tax lawyer with Bryan Cave LLP in New York who grew up watching the Giants play at Candlestick Park. "Once he took possession of the ball and it was his ball, it was income to him based on its value as of yesterday,"

By most estimates, the ball that put Bonds atop the list of all-time home run hitters with 756 would sell in the half-million dollar range on the open market or at auction.

That would instantly put Murphy, a college student from Queens, in the highest tax bracket for individual income, where he would face a tax rate of about 35 percent, or about $210,000 on a $600,000 ball.

Even if he does not sell the ball, Murphy would still owe the taxes based on a reasonable estimate of its value, according to Barrie. Capital gains taxes also could be levied in the future as the ball gains value, he said.

On the other hand, he said, if the ongoing federal investigation into steroid abuse among professional athletes takes a criminal turn for Bonds, the ball's value could go down -- which would likely allow Murphy to claim a loss.

Not everyone concurs on Barrie's interpretation of the intersection between professional sports and the nation's tax code.

But for its part, the IRS seems reluctant to clear up the confusion. With six-figure treasures so rarely falling out of the sky, the agency declined to comment Wednesday on what regulations would apply and whether they would be enforced in the case of the Bonds ball.

History does not provide much of a guide since most fans who have been lucky enough to snag previous long balls have chosen to sell their mementos. And at least one ball was as much a source of embarrassment for the IRS as revenue.

As Mark McGwire chased the mark for most home runs in a season in 1998, IRS officials initially said the ball that broke Roger Maris' long-standing record could be subject to taxes even if it were returned to McGwire. The statements were ridiculed by politicians and quickly disavowed by the agency's top brass.

"All I know is that the fan who gives back the home run ball deserves a round of applause, not a big tax bill," then-IRS Commissioner Charles Rossotti said at the time.

Ultimately, Tim Forneris, a member of the St. Louis Cardinals grounds crew, recovered McGwire's 62nd home run ball. He turned it over to the Cardinals and received a trip to Disney World and a minivan in return.

Phil Ozersky, a Cardinals season-ticket holder, caught McGwire's 70th homer later that season and sold it in 1999 to comic book artist Todd McFarlane for $3 million.

A spokeswoman for the Giants said that as with any ball that enters the stands at AT&T Park, Bonds' 435-foot drive into the right-center field stands belonged to the person who caught it, so the team wouldn't seek its return. Bonds said he also had no interest in retrieving it.

Murphy, who went to the game during a layover from a flight to Australia, grew up near Shea Stadium and was wearing a Mets jersey when he made the charmed grab.

He told the New York Daily News he planned to keep 51 percent of the proceeds from the sale of the ball and would give the rest to his friend, Amir Kamal, 21, of New York, who was also at the game.

"I won the lottery," he told the newspaper. "I'm going to be smart about what I do with it."

#2 08-09-2007, 08:22 AM

I love the IRS about as much or less than a bad case of incurrable hemrrohids.

DividedThigh · #3 08-09-2007, 08:33 AM

i like the irs about like i like being hit by balls up the middle when i pitch, when i pitch at least i have a glove, with the irs you are just neked, lol,dt

Pressing-On · #4 08-09-2007, 08:33 AM

Quote:

Originally Posted by Brother Strange

I love the IRS about as much or less than a bad case of incurrable hemrrohids.

Isn't that the truth!

drummerboy_dave · #5 08-09-2007, 08:35 AM

His tax bracket would change only if he actually sells the ball. Aint no way I would. He definately needs a good tax lawyer.

Pressing-On · #6 08-09-2007, 08:40 AM

Quote:

Originally Posted by DividedThigh

i like the irs about like i like being hit by balls up the middle when i pitch, when i pitch at least i have a glove, with the irs you are just neked, lol,dt

On a side note, the whole steroid issue will always overshadow his career. That's too bad and it's sad.

It's like Sammy Sosa's cork filled bat. That was just embarrassing.

Theresa · #7 08-09-2007, 08:44 AM

dont get me started on the IRS - but I despise the IL Dept of Revenue even more....

for example:

we owed $58.00 for something, underpayment on either withholding or sales and use tax - it was actually a fee for paying late or underpaying, I dont remember which...

anyway, I mailed it in - well since I didnt use the address they TOLD me to use when I called about the bill (since I'd actually paid the tax, just not this unknown penalty/fee they added after), they sent a nasty notice about it - so I sent them a copy of the cleared check. (and emailed it to a local agent)....then I mailed my current tax payment, which included the $58 (again) I didnt realize I was paying that portion twice..

anyway, long story short..

the state issues a levy against our account for $58 b/c they never credited me for the pmt..OR the overpmt. Want to know why? I used the payment stub they mailed me and the self addressed envelope to send the pmts. They got the money, cashed both checks...but didnt notify the collections department...

and the local agent got nasty with me yesterday b/c I didnt mail it to collections. I used the envelope they provided instead. She says to me "we have over 20 po boxes, we dont have any way of knowing if you sent it to the wrong po box"

I was like "there's your problem"

b/c I used "your self address envelope"

She was real huffy and asked for my banks fax number to fax a release of the levy....

oh get this..

her final words to me were (after I reminded her of our email conversation on the day I mailed it, telling her I sent it twice)

"you are technically in revocation, I should come out there and shut you down, you have to be clear" (Meaning my email saying I'd already paid that was apparently not clear to her)

dont you just love government agencies?

Digging4Truth · #8 08-09-2007, 08:47 AM

No I don't love the IRS... which is why we need to vote in Ron Paul so he can get rid of it.

drummerboy_dave · #9 08-09-2007, 08:52 AM

This idiot in this article, John Barrie, makes me wonder what kind of a tax credit he would have got for Steve Bartman in 2003.

COOPER · #10 08-09-2007, 11:10 AM

Hmmm......don't want the tax man coming around?

But, I am sure the Pastor would expect the tithes, offering and special offering if it was caught by a member of his church.