The US tax-collecting agency claims that the Jackson’s administrator’s undervalued some of the star’s assets by hundreds of millions of dollars.
The tax return in question is the 2009 filing which was due on the day the artist died. The filing stated that Jackson’s total estate was worth $7 million in taxable value. The IRS challenged this and issued the estate a tax deficiency notice for $505.1 million in taxes and $196.9million in penalties.
According to court documents, the singer’s image and likeness was valued by his estate at $2105, while the IRS said its taxable value was $434 million. Jackson’s recording assets, valued at $469 million by the IRS, were not valued in the artist’s 2009 filing.
The estate will not be forced to pay any penalties unless the court rules in favour of the IRS, but those in charge of Jackson’s empire were displeased by the news.
“The executioners are disappointed the IRS continues to overreach in the matter but firmly believes all issues will be resolved in favour of the estate and the beneficiaries”, said attorney Howard Weitzman in a statement, he also stated that the estate had paid over $100 million in taxes and is “in full compliance with the tax laws”.
The late artist has made over half a billion dollars since his death.