Monday, February 10, 2014
The IRS is claiming that the Michael Jackson's estate is worth $1.125 billion dollars and is therefore claiming $702 million dollars in taxes. The executors of the Jackson estate claim that it is worth only $7 milion, which would significantly lower the estate taxes due. The IRS has stated that the tax return filed by the estate contained so many errors that a gross valuation misstatement penalty is appropriate, which would allow the government to double the usual 20% underpayment penalty. The estate is fighting the claims of the IRS.
See Jeff Gottlieb, Michael Jackson Estate Embroiled In Tax Fight With IRS, Los Angeles Times, Feb. 7, 2014.
Special thanks to Joel Dobris (Professor of law, UC Davis School of Law) for bringing this article to my attention.