Michael Jackson's Estate Owes In Taxes
Posted by Alex Mazariegos on Aug 26, 2013 - 2:31:49 PM
UNITED STATES—Officials from the Internal Revenue Service (IRS) say that Michael Jackson's estate owes $702 million in federal taxes and penalties, and the United States tax agency further accused the estate of undervaluing Jackson's assets by hundreds of millions.
IRS documents obtained by Reuters state that
Jackson's estate significantly underpriced its taxable value and the singer's image and likeness by several millions. The estate's 2009 tax filing demonstrates it valuing its total worth at an estimated $7 million. The IRS, however, struck back with a tax deficiency notice earlier this year, saying that the estate owes $505.1 million in taxes and $196.9 million in penalties.
The estate valued
Jackson's image and likeness at $2,105. The IRS differs, claiming a $434 million value for the aforementioned image representation. Furthermore,
Jackson's recording assets were not valued in the 2009 tax filing; the tax agency places the recording assets at a $469 million value, making it the largest taxable item.
The estate filed a court challenge in July. A representative from the estate said that the IRS's findings “were based on speculative and erroneous assumptions unsupported by the facts or law.” According to the estate, it has recently paid $100 million in taxes.
Michael Jackson passed away on June 25, 2009. Last November, the estate managed to pay off
Jackson's personal debt of nearly half a billion dollars. The estate's beneficiaries include
Jackson's mother, his children and various charities.
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