Monday, February 10, 2014

I-R-S Hits Michael Jackson Estate With Tax Bill

Michael Jackson's estate is in hot water with the Internal Revenue Service as the governemnt agency believes that the King of Pop's estate was extremely undervalued at the time of his death.

According to the IRS, Jackson's executors estimated his net worth to be $7 million at the time of his death when it's now actually $1.125 billion. The IRS also took the extreme step of doubling the tax penalty from 20 percent to 40 percent.

Some of the undervalued assets of the estate include the singer's likeness which was estimated at $2,105 when it was actually worth $434 million, Jackson's interest in his music catalogue and the Beatles' songs assessed at zero when it is currently valued at $469 million.

Additionally the Michael Jackson Trust was initially valued at $2.2 million but the IRS believes it's worth $60.6 million and finally Jackson's ownership of the Jackson 5 master recording which was initially valued at $11.2 million is now allegedly worth $45.5 million.

A rep for the estate said, "The Estate of Michael Jackson disputes the IRS position in its entirety . . . The Estate used independent, nationally-recognized and highly-qualified expert appraisers in determining the value of the Estate’s assets. By contrast, the IRS consultant’s values are not based on standard appraisal methodology, but rather are speculative and erroneous assumptions unsupported by the facts or law. The Estate has paid over $100 Million dollars in taxes and is in full compliance with the tax laws."

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