IRS calls foul on Michael Jackson estate taxes

11:53 AM, Feb 9, 2014   |    comments
Michael Jackson's estate is being hit with severe tax penalties for alleged underpayment. The IRS says it owes $700 million.
  • Share
  • Print
  • - A A A +



Michael Jackson's estate handlers are in hot water with the Internal Revenue Service, who allege they drastically underestimated the singer's financial worth.

According to a report by the Los Angeles Times, at the time of the singer's 2009 death, executors entered his net value as $7 million. The IRS estimates that number should have been $1.1 billion.

Because of that disparity, the IRS has levied a rare gross valuation misstatement penalty, which doubles Jackson's tax rate from 20% to 40% for underpayment. They say the estate owes $702 million, or a principal balance of $505 million with an additional $197 million in penalties.

Among the issues being disputed:

• The Jackson estate valued his likeness at $2,105; the IRS puts it around $434 million.

• The estate put the worth of his song publishing catalog at $0; the IRS says it's worth $469 million.

• The estate estimated the value of a trust at $2.2 million; the IRS appraised it for $60 million.

You may also like... 

Arrrrrr! Pirates invade Tampa for Gasparilla

Treason? Secret Service visits candidate who says Obama should hang

Mystery House: Unsuspecting house holds a hidden secret

Abuse Arrest: Hog-hunting mom leaves kids in freezing car

Seeking Sasquatch: Bigfoot sightings abound in Colorado

Cyclist stuck in windshield: "Hi, I'm the guy you hit"

Miracle Baby: Tampa toddler has 5-organ transplant

Here kitty, kitty: Lion escapes enclosure at Pasco sanctuary

#ShortYellows: Florida quietly shortened yellow lights

Kittens shot: Officer shoots kittens in front of children

Popular photo galleries:

Faces of Meth: Devastating before and after photos of meth abusers

Trayvon Martin Shooting: Trayvon Martin crime scene photos and George Zimmerman injury photos 

Hooters Winners: Winners of the 2013 Hooters swimsuit pageant

Rejected: Funny Florida license plates rejected by the DMV***warning graphic***

Deadly sinkhole: Home collapses, man dies in giant sinkhole

Popular Databases:

Florida Sex Offenders: Look up sex offenders in any Florida neighborhood here

Restaurant Inspections: Look up inspection reports for any Florida restaurant here

Most Watched Videos