After knocking out Jersey Joe Walcott in the eleventh round of their second fight, on 25 June 1948, Joe Louis stepped away from boxing and did not defend his title. In March 1950, Louis announced his retirement from boxing.

The Internal Revenue Service (IRS), the US tax authority, completed a full audit of Louis’ tax returns in May 1950 and announced that Louis owed the government more than USD 500,000 in interest and penalties. As a result, Louis had no choice but to return to the ring. Louis’ camp negotiated a deal with the IRS under which Louis would come out of retirement, with all Louis’s net proceeds going to the IRS.

A match with Ezzard Charles—who had acquired the vacant heavyweight title in June 1949 by outpointing Walcott—was set for September 27, 1950. By then, Louis was 36 years old and had been away from competitive boxing for two years.

Ezzard Charles won the fight by unanimous decision after 15 rounds.

Louis was still strong, but his reflexes were gone and Charles repeatedly beat him to the punch. By the end of the fight, Louis was cut above both eyes, one of which was shut tight by swelling. He knew he had lost even before Charles was declared the winner.