IRS Goes After Michael Jackson Estate
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The IRS has filed documents in Tax Court claiming that the Michael Jackson estate owes $702 million in taxes and penalties. When Jackson died in 2009, the executors of his estate claimed that his estate had a very low valuation because Jackson's popularity had significantly declined.  The executors valued his estate as of the day before he died, valuing the net worth of the estate at $7 million.  The IRS disagrees, saying the singer's estate was worth $1.125 billion (yes billion).  The IRS is now seeking $505 million in taxes and an additional $197 million in penalties, saying that the executors undervalued the estate in bad faith.  The main item in dispute is Jackson's likeness.  The estate claimed it was worth $2,105, the IRS puts a price tag of $434 million on Jackson's likeness.  Stay tuned ....
Posted under: Tax Law

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