Local News

Report: Former Duke lacrosse player owes millions in taxes

Posted February 24, 2011

— A new report shows a former Duke University lacrosse player owes the Internal Revenue Service millions of dollars.

Reade Seligmann was one of three players exonerated in a racially charged rape case in 2006.

The Detroit News reported on Thursday that Seligmann owes almost $6.5 million in taxes from 2007 – the year the players reached an undisclosed settlement with Duke.

The newspaper cited a tax lien filed this week in New York City.

The 24-year-old New Jersey native's lawyer disputes the tax bill.

72 Comments

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  • hp277 Feb 25, 7:59 p.m.

    Pay up, deadbeat. Rich people need to pay their share, too.

  • concreteman Feb 25, 4:35 p.m.

    @Sunne-Ah but it does matter why there is a tax lien. The IRS is judge, jury, and executioner; there is no trial before the IRS decides it wants to file a lien, it just does it if it feels it has the grounds to. There are many times the IRS will file liens based on incomplete information particularly in complicated tax matters. Owning taxes, in and of itself, is not a crime; it is usually a civil matter. A court, and only a court, can made that determination. There is no mention in any of the stories that any criminal prosecution is current in the works in this matter.

  • Sunne Feb 25, 2:10 p.m.

    @concreteman - It makes no difference if he is guilty or innocent of rape, if he owes taxes and did not pay, he is a criminal. I only mentioned guilt or innocence because of the comments made about how he is innocent and should be left alone. Did you read my comment? Never mentioned why he has a tax lien; it's not important; just the fact that he does and has not paid taxes.

  • davidgnews Feb 25, 1:58 p.m.

    As usual, incomplete report. Kathy, get it together and put some facts in here! Aren't you an entertainment writer? Go back and recaption your Bon Jovi photos.

    Since when would their settlement be taxable, as the article seems to imply (but not outright, either)?

  • Lars Marson Feb 25, 1:44 p.m.

    If you are already wealthy, how hard is it to pay your taxes in a timely manner...did you NOT learn anything from MC Hammer!!??? I mean seriously!

  • Platinum Feb 25, 1:35 p.m.

    If this money is owed based on the settlement, it's probably pretty easy to figure out what the settlement from Duke was even though IIRC that was supposedly an undisclosed amount. How else could such a young man owe so much in taxes?

  • concreteman Feb 25, 1:30 p.m.

    The real question here is at the time the settlement is paid, would the estimated taxes have to be be withheld or is that done on a quarterly estimated bases? Is it like winning the lottery and having the estimated taxes taken out before receiving the lump sum? Also, can you take the legal bill as an "expense" before you come up with the "tax income" figure?

  • ncken1 Feb 25, 1:19 p.m.

    From The Detroit News:
    http://apps.detnews.com/apps/blogs/taxingdetroitblog/index.php#ixzz1EzoIlrqp

    "According to a tax lien filed Feb. 17 in New York City, Seligmann owes $6,492,377 in income taxes from 2007. That's the same year Seligmann reached the settlement with Duke.

    The amount of the settlement has never been disclosed and is an enduring mystery in one of the most divisive scandals in college sports history. Tax lawyer Jeffrey Freeman of Birmingham, Mich., said someone would have to make about $20 million in one year to generate a $6.5 million tax bill."

  • concreteman Feb 25, 1:13 p.m.

    @Sunne: First, there is no issue of guilty or not guilty in this case; it never when to trial, therefore, there is not a crime to be determined. Second, unless you know all 1000+ pages of the federal tax code, there is no way of knowing why the IRS placed the lien. This is not the type of tax filing that would done on a 1040 EZ form!

  • frankbad15 Feb 25, 1:13 p.m.

    $15 million each thats crazy

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