The IRS Wants $702 Million From The Michael Jackson Estate
The Los Angeles Times reports that the IRS socked it to the Michael Jackson Estate with a bill for hundreds of millions of dollars.
The IRS claims the tax preparers for the estate lied about his net worth when he died and now they want $702 million in taxes and fines.
In documents filed with the U.S. Tax Court in Washington, the IRS claims that the executors of Michael Jackson’s estate claimed that he was worth $7 million at the time of his death in 2009. According to the IRS, Michael Jackson was worth just a little bit more than $7 million.
The IRS says that he was worth upwards of $1.125 billion. The IRS says that the Michael Jackson Estate owes taxpayers $505 million in unpaid taxes and $197 million in fines. Adding insult to injury – the IRS doubled the tax penalty from 20% to 40%. Michael Jackson’s tax return was so inaccurate, which is why they’ve been hit with that gross valuation misstatement penalty. The L.A. Times breaks down what the IRS claims was under-reported in the link above.
Taxes are due April 15th annually. Best of luck.