The IRS and the Estate of Michael Jackson are litigating estate taxes in U.S. tax court. The IRS asserts the estate owes $702 million (i.e. $505 million in tax, $197 million in penalty). Jackson’s executor valued his estate at $7 million, the IRS value is $1.125 billion.
Among the tax disputes:
1. The Estate valued Jackson’s name and likeness at $2,105, the IRS valued it at $434.264 million.
2. The Estate valued Jackson’s interest in the Trust that owns the Beatles/Jackson’s songs at $0, the IRS valued them at $469 million.
3. The Estate valued Jackson’s share of the rights to the Jackson 5 master recordings at $11.93 million, the IRS valued them at $45.5 million.
The IRS proposed $197 million penalty included a “gross valuation misstatement penalty,” i.e. a 40% penalty for the tax underpayment (double the usual 20% penalty.)
For complete article please see, “Michael Jackson Estate Embroiled in Tax Fight with IRS.“