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Losing Babe Ruth was tough. Now the Red Sox could face another tough loss — to the Internal Revenue Service. Attorney Daniel L. Goldberg, who represents the Red Sox, filed a suit against the tax agency. The dispute involves taxes the IRS levied on damages money the club paid to six of its former players. These payouts were based on an industrywide settlement between 26 Major League Baseball teams and the Players’ Association. This settlement involved an alleged Major League Baseball conspiracy in the mid-1980s to depress free-agent salaries. Although the Red Sox are suing for a small amount of money, Goldberg said that this case is about principles, not money. He also said that before the court can decide if the revenue service assessed the proper taxes, the court will have to rule whether the money the players received should be considered damages or wages. If the court finds that the payments were damages, then the Sox look to get back $9,515 of the $13,803 they were taxed. If the court decides the payments were wages, the Boston Red Sox want $4,287 refunded.

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