facebook
twitter
rss
account
search
search
 

IRS: Michael Jackson's estate owes $702M in taxes, penalties

Feb. 8, 2014 at 12:30 PM   |   Comments

LOS ANGELES, Feb. 8 (UPI) -- The Internal Revenue Service said U.S. pop icon Michael Jackson's estate owes $505 million in taxes and $197 million in penalties.

Jackson's executors said the late musician's net worth at the time of his death in 2009 was slightly more than $7 million, the Los Angeles Times reported Friday.

The IRS said his net worth was closer to $1.125 billion.

The discrepancy was so wide, the IRS said, it qualified for a gross valuation misstatement penalty, allowing the government to double the 20 percent penalty for underpayment.

"I've never even heard of the gross valuation misstatement penalty being asserted," said Andrew Katzenstein, an estate tax expert at the law firm Proskauer Rose in Los Angeles.

© 2014 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Recommended UPI Stories
Featured UPI Collection
trending
Celebrity Couples of 2014 [PHOTOS]

Celebrity Couples of 2014 [PHOTOS]

Most Popular
1
Nick Cannon confirms split from Mariah Carey
2
George Clooney to marry Amal Alamuddin next month in Italy
3
Chris Pratt visits children's hospital in 'Guardians' costume
4
Mickey Rourke vital to 'Sin City: A Dame to Kill For,' says Frank Miller
5
Mariah Carey and Nick Cannon reportedly separated, will divorce
Trending News
Video
x
Feedback