IRS a Sure Winner in Duran Bout : Taxes: $1.8 million of boxer’s winnings in match against Sugar Ray Leonard will repay refund error.

The Internal Revenue Service is guaranteed a cut of the Roberto Duran-Sugar Ray Leonard fight tonight regardless of who wins, with an agreement to collect $1.8 million from Duran’s purse to repay a mistaken tax refund.

The IRS mistakenly sent $1.5 million to Duran and then tried to have the Panamanian fighter arrested when he failed to repay it, the Justice Department said today.

But the dispute has been settled, and Duran, 38, will repay the money from his $7.6-million purse earned in his Las Vegas super middleweight title bout against Leonard.

The Justice Department said Duran had agreed to pay $1.8 million in back taxes and penalties “and will deposit additional amounts in escrow for 1989 taxes within a few days” of the title bout.

The IRS “erroneously” mailed Duran $1.5 million in tax refunds, the Justice Department said, and “sought to have Mr. Duran arrested until he made arrangements to repay” the money.

An agreement was reached and was approved by U.S. District Judge Stanley Marcus in Miami, the Justice Department said.

Under the deal, Duran will repay the erroneous refunds plus interest and penalties directly from the proceeds of the fight.

Also, the Justice Department said, Duran will deposit from fight proceeds 28% of his estimated income for 1989. It will be placed in an escrow account requiring signatures of his lawyers and the IRS.

Leonard, 33, of Potomac, Md., is guaranteed $12.6 million for fighting Duran.