The Tax Watchdog is reporting that Washington Redskins wide receiver Santana Moss is in debt to the IRS, evidenced by a Notice of Federal Tax Lien recently filed for an unpaid balance of over $258,000. The lien pertains to liabilities owed from his 2006 income tax year.
In 2006, Santana Moss earned $1,910,000 playing for the Redskins. One can’t tell from the lien whether the liability is tied to this income. In addition, the lien doesn’t necessarily include all of his IRS liabilities. I’m not saying he definitely owes more in back taxes, however. The point is that a Notice of Federal Tax Lien need not be comprehensive.
The lien establishes IRS priority on his multi-million dollar home in Florida. The priority is essentially worthless, however, if he has a mortgage on the home exceeding its fair market value. That’s because the lender has higher priority over the IRS upon disposition of a residence subject to IRS lien. If Moss has equity in his home, then the lien provides the IRS priority over unsecured creditors, if any.
Of course, Moss can make the lien disappear if he pays the balance in full. In July, he inked a three-year deal with the Redskins, including $6 million guaranteed. With such income, one would think he should be able to make whole with the IRS.