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1996 Olympic bronze medalist Floyd "Money" Mayweather Jr. built one of the most lucrative careers in sports history, reportedly earning more than $1 billion (1) over the course of his boxing career. Now, the retired champion is facing questions about his taxes.

According to a recent filing first reported by Business Insider (2), the IRS has placed a $7.3 million federal tax lien against Mayweather for unpaid taxes tied to the 2018 and 2023 tax years.

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The lien, filed in Las Vegas where Mayweather owns property, allows the federal government to claim an interest in certain assets until the outstanding tax debt is resolved. An attorney for Mayweather declined to comment on the filing.

It's not the first time (3) the undefeated boxer has found himself in a dispute with the IRS.

U.S. Tax Court judge Emin Toro ordered (4) Mayweather to pay roughly $5.5 million in tax deficiencies and another $1.1 million in penalties related to his 2017 taxes in 2023. Mayweather also previously reached a settlement with the IRS over approximately $22.2 million in taxes connected to 2015.

Here's how it breaks down, and what you can learn about your own tax situation from Mayweather's sparring match with the government.

Tax liens are legal claims against your property or assets when you neglect or fail to pay your tax debts. The lien is intended to protect the government's interest in your property (real estate, valuables and financial assets).

A federal tax lien is one of the IRS's most powerful collection tools. When a taxpayer fails to pay a tax debt after receiving a notice and demand for payment, the government files the lien publicly, meaning it's hosted as a public record.

In Mayweather's case, the lien is registered with the Clark County Recorder's Office (5).

A lien doesn't necessarily mean the IRS is immediately seizing assets. However, it can complicate borrowing, refinancing, selling property and other financial transactions until the debt is resolved.

Tax liens are avoidable (6) in most cases, with timely filing and communication, payment plans and proactive tax planning. However, there are also cases where liens are filed incorrectly or unfairly.

In these situations, homeowners can dispute a lien legally through four primary areas: improper filing procedures or missed deadlines, fraudulent claims or false information, excessive amounts beyond actual debt, and work never completed or performed improperly (7).

Read More: Millionaires under 43 hold only 25% of their wealth in stocks. Here's where their money is actually going

The big lesson for investors is to mind your taxes, whether from property or your investment accounts. If you're looking to scale your wealth, reducing your taxable burden is a big part of the puzzle.

NYU Stern School of Business' Professor Scott Galloway — often known as Prof G — perhaps said it best on an episode of the Diary of a CEO podcast (8).

"If you're trying to build wealth, you have an obligation to pay as little tax as possible," Galloway said, adding the reasonable caveat of doing it "legally."

One of the simplest ways investors can reduce unnecessary taxes is by making full use of tax-advantaged retirement accounts before relying solely on taxable brokerage accounts.

Traditional IRAs allow eligible investors to defer taxes until retirement, while Roth IRAs can provide tax-free qualified withdrawals. Investors looking to diversify beyond traditional stocks and bonds may also consider self-directed Gold IRAs.

Physical gold has historically been viewed as a portfolio diversifier during periods of inflation, market volatility and geopolitical uncertainty.

Plus, holding precious metals in a Goldco Gold IRA can also offer the same tax advantages, such as tax-deferred growth and potentially tax-deductible contributions. You could also avoid the 28% collectibles tax rate on gold (9) when you purchase in one of these accounts.

With a minimum purchase of $10,000, Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match up to 10% of qualified purchases in free silver.

If you're curious whether this is the right investment to diversify your portfolio, you can download your free gold and silver information guide today.

While gold shouldn't replace a diversified portfolio, it is one component of a broader long-term investment strategy and can help soften the blow from a hard-hitting market shift.

Stocks and gold aren't the only ways to build and protect your long-term wealth. Real estate has long been a favorite asset among wealthy investors because it offers another source of income that isn't always closely tied to day-to-day stock market performance.

Depending on how investments are structured, real estate can also provide tax advantages (10) through depreciation, deductible expenses and other provisions of the tax code. The 1031 exchange may be especially important for your bottom line.

You can get those tax advantages too by investing in shares of homes or rental properties through Arrived.

Backed by world-class investors, including Jeff Bezos, Arrived allows you to invest in shares of rental properties, earning a passive income stream without the extra work that comes with being a landlord. No 3 a.m. maintenance calls over busted-up pipes here.

To get started, simply browse through their selection of vetted properties, each picked for their potential appreciation and income generation. Once you choose a property, you can start investing with as little as $100 and potentially earn monthly dividends.

But residential rental properties are just one potential real estate opportunity. There are plenty of other verticals to carve into, especially if you have the capital on hand.

Accredited investors can now tap into this opportunity through platforms such as Lightstone DIRECT, which gives accredited investors access to single-asset multifamily and industrial deals.

Lightstone DIRECT's direct-to-investor model ensures a high degree of alignment between individual investors and a vertically-integrated, institutional owner-operator — a sophisticated and streamlined option for individual investors looking to diversify into private-market real estate.

With Lightstone DIRECT, accredited individuals can access the same multifamily and industrial assets Lightstone pursues with its own capital, with minimum investments starting at $100,000.

Many investors think about taxes only when they're preparing their annual return. Financial professionals generally take a much longer view.

As investment portfolios grow, taxes can become increasingly complicated. Capital gains, dividends, retirement withdrawals, rental income and business earnings can all create additional planning opportunities — and potential pitfalls.

Rather than reacting after a large tax bill arrives, many affluent households work with financial advisors throughout the year to build strategies that balance investment growth with tax efficiency.

If you have a portfolio of $250,000 or more, platforms like WiserAdvisor can connect you with vetted professionals who specialize in this kind of planning.

Simply answer a few questions about your savings, retirement timeline and overall investment portfolio.

From there, WiserAdvisor reviews its network to match you — for free — with up to three vetted, reputable advisors aligned with your specific needs.

You can then schedule no-obligation consultations with your matches to determine who is the best fit for your long-term goals.

WiserAdvisor is a matching service and does not provide financial advice directly. All matched advisors are third parties, and specific financial results are not guaranteed.

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Yahoo Sports (1); Business Insider (2); ESPN (3); Tax Notes (4); Clark County Nevada Government (5); Tax Fortress (6); LegalShield (7); YouTube (8); Metals Edge (9); SmartAsset (10)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.