A frequent critic of the U.S. tax system, Kovacs owed the Internal Revenue Service several hundred thousand dollars in back taxes, due to his simple refusal to pay the bulk of them. Up to 90% of his earnings were garnished as a result. His long battles with the IRS inspired Kovacs to invest his money in a convoluted series of paper corporations in the U.S. and Canada. He would give them bizarre names, such as "The Bazooka Dooka Hicka Hocka Hookah Company". In 1961, Kovacs was served with a $75,000 lien for back taxes; that same day he bought the California Racquet Club with the apparent hope of being able to use it as a tax write-off. The property had mortgages at the time of purchase which were later paid by Edie Adams.