The IRS is auctioning off a deferred compensation arrangement Darryl Strawberry had with the Mets. Minimum bid is $550,000 for a payment stream that is estimated to be well over $1 million. Get your bid in by January 20th if you really want it. See the IRS Notice for more details.
According to an Article by Darren Rovell of ESPN, Mr. Strawberry’s tax problems stem from as far back as 1987 and as current as 2004.
As most can imagine, the IRS’ ability to seize assets to pay back taxes is very broad.
The basic rule is the IRS can get all your property and your rights to property.
To make determinations about what your property or rights to property is – courts first look to state law.
Once a determination has been made that you have property then the IRS can take it. This is pretty much without regard to restrictions that may be placed on the property as is often the case with retirement plans.
Mr. Strawberry’s legal and personal struggles have been well documented over the years. It is truly sad to see such a talent have some many problems.
It is very unusual for the IRS to have taken these steps to collect the taxes owed. In my experience, it does not happen unless the IRS has no other resort.
Like with most problems, IRS problems are best met head on. Ignoring the IRS is not a good solution.