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Wednesday, June 18, 2008

Det News: IRS slugs Prince Fielder with lien

Get the skinny on lien beef…

IRS says Prince Fielder owes $409,149 in federal income taxes: The Milwaukee Brewers first baseman is a former favorite son of Detroit, who grew up roaming a Detroit Tigers clubhouse inhabited by his father, slugger Cecil Fielder, who currently manages the independent league Atlantic City Surf baseball team.

Father and son share good genes, home-run power and, according to public records, financial issues. Four years ago, The Detroit News reported about how Cecil lost $47 million in career earnings through gambling and bad business decisions.

...The IRS filed a $409,149 lien against Prince on Oct. 6, 2005, for unpaid income taxes. According to the lien, which you can see here, Prince owes the money from 2003, the year after he signed his first contract and received the $2.4 million signing bonus.

Thanks to Fanhouse.

Repoz Posted: June 18, 2008 at 01:31 PM | 55 comment(s) Login to Bookmark
Tags: brewers, business

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1. Weekly Journalist_ Posted: June 18, 2008 at 01:56 PM (#2824282)

Taxes aren't automatically withheld from the bonus check? Is it considered 1099 income?

2. bunyon Posted: June 18, 2008 at 01:59 PM (#2824283)

I'm pretty sure my wife's bonuses are 1099 income.

3. Clemenza Posted: June 18, 2008 at 02:03 PM (#2824285)

I don't understand how this happens even if you assume the player knows absolutely nothing about finances. This would have to be pretty close to the top of the list of "Things an agent should help his client with".

4. flournoy Posted: June 18, 2008 at 02:07 PM (#2824286)

What is the agent going to do? I doubt that many agents are accountants. The agent could refer his clients to an accountant though.

5. Shooty: Applying to be Fearless Leader

Posted: June 18, 2008 at 02:11 PM (#2824290)

What is the agent going to do? I doubt that many agents are accountants. The agent could refer his clients to an accountant though.

Jeez Louise. An agent should have an effin accountant as part of his organization as well as a financial planner.

6. bibigon Posted: June 18, 2008 at 02:15 PM (#2824291)

I'm more amazed to learn that a man with a gambling problem manages the Atlantic City Surf. Amazed might be the wrong word actually...

7. tribefan Posted: June 18, 2008 at 02:22 PM (#2824298)

Fielder's agent is Boras, who I would bet has all those resources available to his clients. Whether or not the clients utilize them is another story.

8. MikeinMI Posted: June 18, 2008 at 02:23 PM (#2824299)

Bonus paid to an employee should be on W-2, not a 1099. If it wasn't we'd all get a bonus each week so our employer could dodge payroll taxes. I am assuming that major league baseball players are employees of the teams and not contractors. I didn't think that contractors collectively bargain. But the lien says self-employment on it. I think it's possible that the Brewers misfiled a 1099 but that seems very unlikely.

I wonder if they tried to asssert that the was an advance over the life of the contract. The IRS woudln't buy it but I can imagine people trying it.

9. Weekly Journalist_ Posted: June 18, 2008 at 02:24 PM (#2824300)

I hope your wife blows some of those bonus dollars on you, Bunyon.

10. Shooty: Applying to be Fearless Leader

Posted: June 18, 2008 at 02:25 PM (#2824301)

Fielder's agent is Boras, who I would bet has all those resources available to his clients. Whether or not the clients utilize them is another story.

This is really bizarre then. Maybe Prince was taking advice from his pop.

11. Weekly Journalist_ Posted: June 18, 2008 at 02:26 PM (#2824303)

Very strange. I know my wife's bonuses have taxes wiheld because she ####### about it every bonus. And I'm pretty sure here W-2 included bonus income, as well. It's hard to expect a 19 year old just drafted to have that kind of financial discipline after getting a $2.9 million check. As others said, I'm shocked that agents don't help with this kidna stuff. These are kids we're talking about.

12. Kyle S at work Posted: June 18, 2008 at 02:29 PM (#2824307)

13. Shooty: Applying to be Fearless Leader

Posted: June 18, 2008 at 02:31 PM (#2824309)

My bonus is not only W2 income, it is taxed at the top marginal rate no matter what my to-date income has been. I think a signing bonus might be different, though, because it is paid prior to the player becoming an employee. If so, shame on Prince for not saving a piece for Uncle Sam.

Yeah, it's always fun to get your bonus number from your employer and actually see only half of it in your bank account on deposit day.

14. Misirlou's got a busy day, he's wearing a vest Posted: June 18, 2008 at 02:32 PM (#2824311)

Yeah, it's always fun to get your bonus number from your employer and actually see only half of it in your bank account on deposit day.

Worse, getting it in March and having to wait over a year to reclaim the excess taxes.

15. Big Train Posted: June 18, 2008 at 02:35 PM (#2824313)

I know Children's Hospital was paying out a 30k signing bonus for nurses and no taxes were withheld on those checks.

16. Barry`s_Lazy_Boy Posted: June 18, 2008 at 02:36 PM (#2824315)

I'm sure its different due to a signing bonus rather than a regular bonus.

17. bunyon Posted: June 18, 2008 at 02:36 PM (#2824316)

Uh, okay, guys. I may well be wrong, having all the financial accumen and girth of a Fielder (now if only I had the slugging ability).

She deals with almost all the finances. I review and make sure I know where all the accounts are, but, seriously, I'm not good with that stuff. So, from what I read above, it's quite likely that my post 2 is in error.

However, both Prince and my wife are vegitarians.

18. scareduck Posted: June 18, 2008 at 03:03 PM (#2824336)

This is really bizarre then. Maybe Prince was taking advice from his pop.

Maybe in those days, but isn't he estranged from his father?

19. Harveys Wallbangers

Posted: June 18, 2008 at 03:05 PM (#2824339)

This is really bizarre then. Maybe Prince was taking advice from his pop.

Prince wouldn't speak to his father if you held a gun to his head. The rift there is real and palpable.

Though like others here I am clearly surprised that with such a well-regarded agent anything like this could have happened. There is certainly nothing in the "rumor mill" about Fielder having any types of financial issues similar to his male parent. By all accounts he is a "boring family guy".

One has to wonder if Prince made the right choice in agents. While Fielder has openly stated he is happy for Ryan Braun it isn't much a secret that he "wants his money too". Who knows if Prince is getting the attention needed from his agent.

Sure doesn't seem that way............

20. Shooty: Applying to be Fearless Leader

Posted: June 18, 2008 at 03:19 PM (#2824352)

This is really bizarre then. Maybe Prince was taking advice from his pop.

Maybe in those days, but isn't he estranged from his father?

Don't make me start using the :) emoticon here people!

21. Bring Me the Head of Alfredo Griffin (Vlad) Posted: June 18, 2008 at 03:26 PM (#2824358)

"Prince wouldn't speak to his father if you held a gun to his head. The rift there is real and palpable."

IIRC, Cecil gambled away Prince's draft bonus, at a time when he was managing Prince's finances.

Maybe he told Prince he paid the taxes, and then gambled with that money, too?

22. Crispix Attacks Posted: June 18, 2008 at 03:38 PM (#2824369)

No problem, Cecil can get it back during the "double or nothing" portion of the IRS audit.

23. Shooty: Applying to be Fearless Leader

Posted: June 18, 2008 at 03:40 PM (#2824374)

No problem, Cecil can get it back during the "double or nothing" portion of the IRS audit.

Hey jackass, a gambling problem is nothing to joke about.

Naw, I'm kidding. Made me laugh.

24. bunyon Posted: June 18, 2008 at 03:41 PM (#2824375)

"Prince wouldn't speak to his father if you held a gun to his head. The rift there is real and palpable."

IIRC, Cecil gambled away Prince's draft bonus, at a time when he was managing Prince's finances.

Maybe he told Prince he paid the taxes, and then gambled with that money, too?

I have no idea if that is accurate or not (Pop managing son's finances), but, if so, this is extremely plausible. I've known a number of people who had someone else managing their money who screwed them royally.

25. Hack Wilson Posted: June 18, 2008 at 03:48 PM (#2824381)

Of course Prince should be able to convince the IRS that Bud Selig promised to pay all income taxes on the bonus. I'd believe it and be happy to toss Bud in jail.

Survivor winner Richard Hatch had little luck with a similar argument

26. TVerik Posted: June 18, 2008 at 03:49 PM (#2824382)

I know Children's Hospital was paying out a 30k signing bonus for nurses and no taxes were withheld on those checks.

The only difference is that the Children's Hospital has made the playoffs more recently than the Crew.

27. BeanoCook Posted: June 18, 2008 at 04:51 PM (#2824444)

Let's imagine Prince just didn't have the money, esp after his dad took hundreds of thousands and maybe Prince spent $1 million of it, or it is locked up in difficult to liquidate assets.

At the very least, you would think, Boras--*if made aware of the situation, would be able to loan him the money, or give Prince a nice advance on his next contract, which is sure to be over $100 million, or close to.

28. phredbird

Posted: June 18, 2008 at 05:00 PM (#2824454)

his father burned through 47 mil? how do you do that? really. was he at the tables 24/7?

29. SuperGrover Posted: June 18, 2008 at 05:06 PM (#2824462)

#9 gets a lot more fun if you remove six words...at least for Bunyon.

Yes, I'm that sophomoric.

30. Justin 'The Cespedobear' T Posted: June 18, 2008 at 05:20 PM (#2824482)

his father burned through 47 mil? how do you do that? really. was he at the tables 24/7?

Just cuz you and me play at the $10 tables doesn't mean a guy with 47 mil does.

31. snapper (history's 42nd greatest monster) Posted: June 18, 2008 at 05:20 PM (#2824483)

It's hard to expect a 19 year old just drafted to have that kind of financial discipline after getting a $2.9 million check. As others said, I'm shocked that agents don't help with this kidna stuff. These are kids we're talking about.

I'm pretty sure most 19 year olds know you have to pay taxes.

I mean, they withhold taxes from a job at the f-ing mall. Why would anyone think a bonus check was different?

32. Shooty: Applying to be Fearless Leader

Posted: June 18, 2008 at 05:22 PM (#2824488)

I'm pretty sure most 19 year olds know you have to pay taxes.

I have a feeling Prince's bonus check was the first money he earned in his life.

33. JoeHova Posted: June 18, 2008 at 05:42 PM (#2824518)

This lien was filed almost 3 years ago. I'd have to think Prince and the IRS have worked something out by now. Fielder may not be able to pay $400,00 right now, but he'll be able to easily cover it within the next year or two. There's no reason for the IRS to worry about getting their money.

34. Shock Posted: June 18, 2008 at 05:44 PM (#2824523)

I have a feeling Prince's bonus check was the first money he earned in his life.

The way his pop managed his money, I wouldn't be so sure about that.

35. tribefan Posted: June 18, 2008 at 05:46 PM (#2824526)

At the very least, you would think, Boras--*if made aware of the situation, would be able to loan him the money, or give Prince a nice advance on his next contract, which is sure to be over $100 million, or close to.

That's true, but I wouldn't be shocked if Fielder had ignored advice from Boras' people on the matter, or on his personal finances in general. If his father was handling his finances, he probably talked Prince into it on the grounds that he'd do it for free rather than paying an advisor the fee.

36. Barry`s_Lazy_Boy Posted: June 18, 2008 at 05:51 PM (#2824543)

his father burned through 47 mil? how do you do that? really. was he at the tables 24/7?

have you ever seen that guy eat?

37. Shooty: Applying to be Fearless Leader

Posted: June 18, 2008 at 05:52 PM (#2824548)

his father burned through 47 mil? how do you do that? really. was he at the tables 24/7?

have you ever seen that guy eat?

Ha! But a man gambling like Cecil should get a comped buffet, no?

38. Boots Day Posted: June 18, 2008 at 06:18 PM (#2824601)

If David Letterman ever does a "Top Ten Ways for a Casino to Go Broke," Number One will be "Comp the buffet for Cecil Fielder."

39. Shooty: Applying to be Fearless Leader

Posted: June 18, 2008 at 06:24 PM (#2824612)

If David Letterman ever does a "Top Ten Ways for a Casino to Go Broke," Number One will be "Comp the buffet for Cecil Fielder."

Oh I don't know...an enterprising Casino could make Cecil At The Buffet a floor show. I'd rather see that than Celine Dion.

40. bunyon Posted: June 18, 2008 at 06:28 PM (#2824625)

Consultation with my wife reveals the fact that her bonus is, indeed, paid on a W-2 and taxes withheld. It also reveals that she thinks I'm an idiot for not knowing this. Of course, she can't move the furniture, so I have that.

As to post #9 and 29, I'm trying to determine which sentence is most likely and which I'd most prefer.

41. slothinator Posted: June 18, 2008 at 06:32 PM (#2824633)

This is really bizarre then. Maybe Prince was taking advice from his pop.

More Likely Wesely Snipes.

42. The Good Face Posted: June 18, 2008 at 06:49 PM (#2824672)

Oh I don't know...an enterprising Casino could make Cecil At The Buffet a floor show. I'd rather see that than Celine Dion.

I would totally shell out $30 for this. Double it if Cecil's not allowed to use utensils. Let us watch while playing Blackjack and I'm sold.

43. Clemenza Posted: June 18, 2008 at 06:54 PM (#2824691)

#9 gets a lot more fun if you remove six words...at least for Bunyon.

Yes, I'm that sophomoric.

I am too.

My thought was, "At least his wife blows something".

44. Greg Pope Posted: June 18, 2008 at 07:12 PM (#2824724)

Fielder may not be able to pay $400,00 right now, but he'll be able to easily cover it within the next year or two. There's no reason for the IRS to worry about getting their money.

Hey, it's not about the money with the IRS, it's about respect! How can the IRS feed its family without that $400,000? Fielder needs to show some respect to the IRS and cough up the money!

45. David Nieporent (now, with children) Posted: June 18, 2008 at 07:19 PM (#2824735)

Taxes aren't automatically withheld from the bonus check? Is it considered 1099 income?

No. Payments from an employer to an employee are W-2 income, not 1099 income, whether they're called salary, bonus, commission, or gift. (The only possible way I can see the alternative being the case would be that, because it was a signing bonus, he wasn't actually an employee at the time.)

EDIT: should read thread before responding.

46. North Side Chicago Expatriate Giants Fan Posted: June 18, 2008 at 09:47 PM (#2824929)

Of course Prince should be able to convince the IRS that Bud Selig promised to pay all income taxes on the bonus. I'd believe it and be happy to toss Bud in jail.

Of course, if the income tax were paid for him, that would be taxable as well.

47. Obo Posted: June 18, 2008 at 09:56 PM (#2824940)

Of course, if the income tax were paid for him, that would be taxable as well.

If this were Old Primer somebody would next post as Zeno.

48. The Ghost, elitist lollygagging neck-stabber

Posted: June 18, 2008 at 10:29 PM (#2824980)

I'll bet that Boras got his piece of the signing bonus right up front.

I couldn't stand the stories recently about Ed McMahon's possible home foreclosure. The guy is 85 and he didn't save for the day when he couldn't work?

49. Zach Posted: June 18, 2008 at 10:38 PM (#2825000)

Those checks can be pretty heavy, too. A man has only so many years on the Publisher's Clearinghouse Prize Patrol.

50. Barry`s_Lazy_Boy Posted: June 18, 2008 at 10:38 PM (#2825002)

Of course, if the income tax were paid for him, that would be taxable as well.

At a former company we were given $100 bonuses for passing insurance industry exams (LOMA), and the bonus was "taxed up" so that the increased take home was about $100. I always joked that I should change my 401k withholding to 25% for those checks.

51. NTNgod Posted: June 19, 2008 at 03:51 AM (#2825468)

I'll bet that Boras got his piece of the signing bonus right up front.

Boras only became Prince's agent a year or two ago. Cecil negotiated the bonus, IIRC.

MIL Journal-Sentinel blog:

So, now it was thrown into our lap at the JS. Because the document was nearly three years old, the possibility existed that matter had been resolved. If it had, I knew Fielder's agent, Scott Boras, would know about it, so I called him.

Boras let it be known in no uncertain terms that he thought I had no business poking into the situation. He said he didn't comment on the personal finances of his clients, which I understood. But he also made inferences during our conversation that made it seem as if the matter was being addressed. Still, he made it clear it could compromise my working relationship with Fielder if I pursued the matter -- a proposition I didn't take lightly.

With no on-the-record quotes, however, a reporter is left to his own devices and instincts. As I expected, Fielder said he would not comment on the situation.

So, I was left to try to figure out the situation. The IRS document obviously proves there was an issue at one time, and could still be. Another reporter on the sports staff, Don Walker, looked into the online court records in Florida and saw there was no record that the matter had been resolved.
...
Manager Ned Yost later echoed Boras' comments that newspapers have no business reporting on the personal financial matters of a player. And, to a certain point, I agree.

Here's where we draw a distinction in the newspaper business, however. When a player gets involved in matters of legal consequences, be it fights in a bar, drugs, or matters with police, it crosses over the line into public territory.

Not paying IRS taxes is definitely a legal matter, with legal consequences. If you don't believe me, ask actor Wesley Snipes. I don't think Fielder is going to jail - in fact, I believe this matter is in the process of being resolved, with some link to his father - but it's still a legal issue. And the IRS document the Detroit News produced is a matter of public record.

52. NTNgod Posted: June 19, 2008 at 03:56 AM (#2825473)

MIL Journal-Sentinel:

Because the lien was filed nearly three years ago, an attempt was made by the Journal Sentinel to determine if it had been paid off. But Orange County (Fla.) online court records indicated the lien had not been satisfied. The lien was on property listed to Fielder in Melbourne, Fla.
...
"I'm not going to comment on a player's personal finances," said Boras, who made it clear he didn't think it was a newspaper's business to report on such matters. Boras did say that those looking into the matter should concentrate on the date the lien was filed.

"They're about 1 ½ years behind on the real story," Boras said.

The implication was that the lien has been or is being addressed, though Boras declined to reveal any details. Another person familiar with the situation indicated Fielder was in no danger of being prosecuted by the IRS.

One baseball source familiar with the agent's method of operation said Boras would never allow one of his clients, especially a high-profile player such as Fielder, to be in non-compliance with the IRS.
...
If Prince Fielder needed money to satisfy the IRS, he certainly could have addressed the situation earlier this season, when the Brewers proposed a multi-year contract extension that he and Boras turned down. The offer was believed to be for five years and approximately $60 million, but Boras apparently thought it was below market value and is prepared to go year-to-year with Fielder's salary.

53. CrosbyBird Posted: June 19, 2008 at 03:30 PM (#2825879)

Hey, it's not about the money with the IRS, it's about respect! How can the IRS feed its family without that $400,000? Fielder needs to show some respect to the IRS and cough up the money!

The IRS is really making its decision based on the quality of the school system.

54. The Polish Sausage Racer Posted: June 20, 2008 at 07:19 PM (#2827358)

From experience, the IRS is notorious for not getting around to satisfying liens when the taxes have been paid, unless there's a closing imminent (and sometimes not even then). You can't read much into the fact that the lien's not satisfied, I'm afraid.

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Det News: IRS slugs Prince Fielder with lien

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