Thursday, August 22, 2013
As I have previously discussed, the Jackson Estate is arguing that the IRS has overvalued Michael Jackson's assets. The estate's petition did not include any dollar amounts. Tax lawyers are claiming that the lack of dollar amounts could mean large differences in the estate taxes paid and what is allegedly owed. The dispute turns on some assets that are difficult to calculate value for tax purposes such as Michael Jackson's "image and likeness."The penalties for under valuation is as high as 40 percent.
The challenge to the IRS tax deficiency was filed in Tax Court on July 26. The IRS has 60 days to respond. For the past year the IRS and the estate have been meeting to come to an agreement regarding valuation differences. Charles Rettig, an attorney for the Jackson estate, declined to comment on the amount of penalties in dispute.
See Patrick Temple- West Michael Jackson Estate Fights U.S. IRS in Tax Court, Reuters, Aug. 20, 2013.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.