facebook
twitter
rss
account
search
search
 

Michael Jackson's estate owes $702 million, IRS says

Executors of Michael Jackson's estate so grossly undervalued his net worth, his tax penalties were doubled.
Posted By DANIELLE HAYNES, UPI.com   |   Feb. 9, 2014 at 11:08 AM   |   Comments

| License Photo
Feb. 9 (UPI) -- The Internal Revenue Service said the executors of Michael Jackson's estate undervalued his net worth by hundreds of millions of dollars and say the estate owes more than $702 million in taxes and penalties.

Documents filed with the U.S. Tax Court by Jackson's executors at the time of his 2009 death indicate he was worth more than $7 million, but the IRS says he's worth more. Much more.

The late pop singer is actually worth closer to $1.125 billion, the IRS said, a difference so vast it qualified for a gross valuation misstatement penalty, allowing the government to double the usual 20 percent penalty for underpayment.

The IRS says Jackson's estate owes $505 million in taxes and a penalty of $197 million.

The estate says Jackson's likeness was worth $2,105, but the IRS said it was closer to $434 million. The estate valued the trust that owns songs by Jackson and the Beatles at nothing, but the IRS said it was closer to $469 million.

[Los Angeles Times]
[TMZ]

Follow @DanielleHaynes1 and @UPI on Twitter.
Contact the Author
© 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.
Most Popular
1
Why the fake braces trend may be dangerous for users
2
Jared Leto 'stopped eating' for his 'Dallas Buyer's Club' role
3
Gisele Bundchen, Tom Brady drop $14M on Manhattan home
4
Kelly LeBrock arrested for DUI
5
Brandi Brandt faces drug charges in Australia
Trending News
Video
x
Feedback