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According to a report Forbes, a respected business publication, Juan Pablo Montoya is in civil Tax Court arguing with the Internal Revenue service over claims of $2.7 million in unpaid taxes and penalties.
The complicated lawsuit has many issues including that as a foreign resident (in the US) the Colombian driver was allowed to defer income and to legally avoid taxes on monies which are paid overseas rather than in the United States - even though Montoya and his wife, Connie, and children mostly live in the Miami, Florida area now.
When Montoya moved over to NASCAR, after his tenure with McLaren-Mercedes he set up a new company to handle the marketing of his image.
According to the Forbes article the Federal authorities claim that the Columbian driver earned $9 million in the years 2007 and 2008. The Montoyas reported income of $2.4 million. The IRS also disallowed deductions based on Montoya's changing residence to depreciate of an $8.7 million Lear Jet.
This case is not a criminal case but a civil one where Montoya is challenging the IRS' calculation of taxes owed.
Coincidentally, Brazil's Helio Castroneves who will be Montoya's teammate at Penske Racing in IndyCar in 2014, was acquitted of tax fraud charges arising out of similar issues of resident “aliens” (foreigners in US legalese). Castroneves was later pursued in Tax Court by the IRS and compromised with the US government paying more taxes.
The article also pointed out that there are IRS challenges to golfers Sergio Garcia and Retief Goosen and are an issue in Spain's current pursuit of Barcelona football star Lionel Messi.
The complicated lawsuit has many issues including that as a foreign resident (in the US) the Colombian driver was allowed to defer income and to legally avoid taxes on monies which are paid overseas rather than in the United States - even though Montoya and his wife, Connie, and children mostly live in the Miami, Florida area now.
When Montoya moved over to NASCAR, after his tenure with McLaren-Mercedes he set up a new company to handle the marketing of his image.
According to the Forbes article the Federal authorities claim that the Columbian driver earned $9 million in the years 2007 and 2008. The Montoyas reported income of $2.4 million. The IRS also disallowed deductions based on Montoya's changing residence to depreciate of an $8.7 million Lear Jet.
This case is not a criminal case but a civil one where Montoya is challenging the IRS' calculation of taxes owed.
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| Juan-Pablo Montoya. (Photo: NASCAR) |
Coincidentally, Brazil's Helio Castroneves who will be Montoya's teammate at Penske Racing in IndyCar in 2014, was acquitted of tax fraud charges arising out of similar issues of resident “aliens” (foreigners in US legalese). Castroneves was later pursued in Tax Court by the IRS and compromised with the US government paying more taxes.
The article also pointed out that there are IRS challenges to golfers Sergio Garcia and Retief Goosen and are an issue in Spain's current pursuit of Barcelona football star Lionel Messi.