Saints handling of payments from Louisiana lands in tax court
The Saints recently characterized rumors regarding owner Tom Benson’s reluctance to visit the White House as “crap.” We assume that the franchise is using more colorful language to describe one of the agencies that ultimately reports to the man who lives there.
Per Forbes.com (via Sean Leahy of USA Today), the IRS has challenged the team’s failure to pay taxes on one of the $8.5 million annual payments received from Louisiana in order to keep the team from moving. The IRS claims that the money constitutes income; the Saints believe it was a contribution to “working capital” and not taxable.
Though the controversy focuses only on a payment made in 2003, the money came as part of a 10-year arrangement involving Louisiana paying money to the Saints. Thus, the potential tax bill could skyrocket.
So why do we have a feeling that, in the end, the Saints will end up coaxing Louisiana into “grossing up” the payments?