Post by lazarus on May 15, 2005 16:03:06 GMT -5
IRS on Raiders' schedule
By Barry Witt
Mercury News
The IRS is after Al Davis. Again.
Documents filed this week in the ongoing lawsuit between Davis and the McGah family, which owns 31 percent of the team, reveal that the feds notified the Raiders partners last month that they owe back taxes on money they picked up from Oakland and Alameda County after the team returned in 1995.
The deal always looked fishy in that it was structured to provide the Raiders $63.9 million in ``loans'' but offered no schedule of repayments that would actually require the team to pay all the money back.
Davis acknowledged in testimony in his failed lawsuit against the NFL in Los Angeles that he distributed a portion of that money to his partners.
Davis already suffered one adverse court ruling related to the same money. The judge in Los Angeles -- backed up by a state appellate panel -- said the payments also could be subject to NFL revenue sharing, which Davis was trying to avoid.
Now, according to a filing by Davis' attorneys, the IRS and the Raiders ``are engaged in an ongoing dispute regarding whether personal seat license revenues and similar revenues that were paid directly to the Oakland Alameda County Coliseum Inc. and certain of its affiliates constitute taxable income of the Partnership.''
The Raiders plan to challenge the IRS position. The documents do not reveal exactly how much the IRS says Davis and his fellow partners owe in back taxes and penalties, but figure it isn't a small amount.
According to a letter sent to the McGahs and filed in court, the IRS is seeking adjustments for the years 1995 through 1998.
By Barry Witt
Mercury News
The IRS is after Al Davis. Again.
Documents filed this week in the ongoing lawsuit between Davis and the McGah family, which owns 31 percent of the team, reveal that the feds notified the Raiders partners last month that they owe back taxes on money they picked up from Oakland and Alameda County after the team returned in 1995.
The deal always looked fishy in that it was structured to provide the Raiders $63.9 million in ``loans'' but offered no schedule of repayments that would actually require the team to pay all the money back.
Davis acknowledged in testimony in his failed lawsuit against the NFL in Los Angeles that he distributed a portion of that money to his partners.
Davis already suffered one adverse court ruling related to the same money. The judge in Los Angeles -- backed up by a state appellate panel -- said the payments also could be subject to NFL revenue sharing, which Davis was trying to avoid.
Now, according to a filing by Davis' attorneys, the IRS and the Raiders ``are engaged in an ongoing dispute regarding whether personal seat license revenues and similar revenues that were paid directly to the Oakland Alameda County Coliseum Inc. and certain of its affiliates constitute taxable income of the Partnership.''
The Raiders plan to challenge the IRS position. The documents do not reveal exactly how much the IRS says Davis and his fellow partners owe in back taxes and penalties, but figure it isn't a small amount.
According to a letter sent to the McGahs and filed in court, the IRS is seeking adjustments for the years 1995 through 1998.
