Michael Jackson's Estate Targeted By IRS For Alleged Cheating On Taxes
Posted by Joseph Lee on 02.08.2014
TMZ reports that Michael Jackson's estate is being targeted by the IRS for allegedly cheating on their taxes. They owe the IRS over $700 million. The Los Angeles obtained documents that said when Jackson died his executors told the IRS his net worth was $7 million. Jackson's net worth was actually $1.125 billion. The IRS claims that the executors misled them so much on the amount, the tax penalty has been doubled from 20% to 40%. Since the Estate didn't pay $505 million worth of taxes, the 40% makes what they owe $702 million.
Here is what was under-reported:
- The estate valued Jackson's likeness at $2,105. The IRS says that value was $434 million.
- The estate valued Jackson's interest in a trust that owns songs by Jackson and the Beatles at zero. The IRS says it's $469 million.
- Another MJ trust was valued by the Estate at $2.2 million. The IRS said it's worth $60.6 million.
- The estate valued the Jackson 5 master recordings at $11.2 million. The IRS said $45.5 million.
The Estate will likely fight the claims but the taxes could take away all the money that the Estate made after Jackson's death, which could hurt his children.