Friday, August 16, 2013
As I have previously discussed, the legal battle between the William Davidson's widow and son versus Jonathan Aaron, co-executor of Davidson's estate and president of the William Davidson foundation, and wife Mary continues. Forbes labeled Davidson was the 62nd most wealthy person in the U.S. so it is no wonder why his estate faces so many claims. In addition to the ongoing family legal battle, Davidson’s estate could possibly face a Tax Court judgment of up to $2.8 billion dollars in estate tax, gift tax, and penalties that the IRS is claiming the estate has not paid.
Now, IRS lawyers are claiming that the $2.8 billion dollar bill issued to the Davidson estate is correct because of his failure to account for Davidson's huge gifts and stock value. In response, estate representatives assert that the IRS bill is "wildly inflated" and that despite the tax deficiency the payment of taxes was up to date.
The Free Press reported the entire $2.8 billion will probably not be owed to the IRS, but because of the large accounting deficiency, a $2 billion dollar tax is not unlikely. This could be the largest estate tax battle in U.S. history.
See Todd Spangler IRS Lawyers Defend $2B Tax Bill Davidson Estate, Detroit Free Press, Aug. 15, 2013.