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

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]