Multiple UFC tournament winner, UFC Hall of Famer, and now Bellator 149 headliner Royce Gracie is facing some serious trouble after BloodyElbow.com reported that the Brazilian legend is under investigation from the IRS.
Gracie’s troubles started in 2012 when he received an IRS administrative summons “seeking information about their foreign bank and foreign investment activities. Citing the necessity of documentation for tax years 2007-2011 in order to evaluate “among other things, [the Gracie’s] liability for civil penalties.”
Photo Credit: Bloodyelbow.com
Royce was then scheduled to appear in court on December 31, 2012 to produce bank documents. He failed to even appear. In doing so, the U.S Attorney Cheif for Tax Division filed a legal petition to enforce said summons.
Agent Ybarra of the IRS was then given assignment “to examine potential international tax issues relating to the [Gracie’s] federal income tax returns.” Ybarra believed that she had discovered foreign bank accounts in which the Gracie’s had signature authority, yet did not disclose to the IRS.
A substantial amount of money was moved from these accounts. Some transactions as high as $3 million, which would be in conflict with their “minimal taxable income” and certain claims for tax credits.
After much legal and financial sparring back and forth, the IRS made enormous adjustments to the fraudulent tax claims made by the Gracie’s that were separately on $900, $2,545, $170, $0, $0, and $3,925 over the 2007-2012 year period.
Should the IRS find themselves correct in all adjustments, the Gracie’s will owe seperate gigantic charges for each year in said period that are $41,577, $91,177, $5,823, $239,756, $138,732, and $123,110. Along with this, the Gracie’s also face a huge 75% penalty which in total would amount to $1,149,949.25.
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As of now, Royce Gracie is still scheduled to appear in the main event of Bellator 149 in the rubber match against long time rival Ken Shamrock in February.