The Internal Revenue Service claims the Las Vegas legend and his wife owe more than $1.8 million in back taxes and penalties, the Las Vegas Review-Journal reported Tuesday. But Newton's attorneys claim it is the government that actually owes him money.
Court papers filed in Washington say Newton's delinquent tax debt was incurred between 1997 and 2000. Newton filed a 32-page response in Washington Tax court disputing the debt.
Newton attorney Lavar Taylor told the Review-Journal: "We believe the IRS owes him money."
He refused to elaborate on the claim, however.
This marks the second time Newton and the IRS have gone head to head over taxes, the newspaper said. He filed for Chapter 11 bankruptcy to reorganize an estimated $20 million in debts in 1992, which included a $341,000 lien for back taxes.
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