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Dorsett and IRS Agree on Figures

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Associated Press

Dallas Cowboy Tony Dorsett and the Internal Revenue Service have apparently reached an agreement over the running back’s overdue tax bills.

Dorsett reportedly owes the IRS about $415,000 from tax shelters that were disallowed in September, and in penalties and interest.

“An agreement was reached which was satisfactory to both parties,” Alice Jenkins, a spokeswoman for the Internal Revenue Service, told The Dallas Morning News Thursday. “We worked with Tony the same way we would work with any other taxpayer to help satisfy their tax obligations.”

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Dorsett reportedly owes taxes for 1979, 1980 and 1983.

The Dallas Times Herald reported that the penalty and interest owed by Dorsett have been put on hold--an amount which makes up about half of the $415,000 owed.

IRS officials said penalty and interest compound daily when there is no appeal. Dorsett decided last week to appeal the liens the IRS placed on two of his homes and on his wages.

Meanwhile, Dorsett is being fined $1,000 per day during his absence from training camp, which began Tuesday in Thousand Oaks, Calif.

Cowboys president Tex Schramm said he will work with Dorsett’s representatives in an attempt to restructure Dorsett’s seven-year contract. Dorsett is in the fourth year of the deal, worth $400,000 per season.

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