US tax office says Michael Jackson's estate owes $702million

The IRS has claimed the estate has undervalued Jackson's assets

Photo: Next Previous

Photo Gallery: Michael Jackson

Michael Jackson's estate owes $702million in federal taxes and penalties, according to the IRS.

The US tax-collecting agency claims that Jackson's administrators undervalued some of the star's assets by hundreds of millions of dollars. The estate previously challenged an IRS claim on the King of Pop's fortune in July, reports Reuters.

The tax return in question is the 2009 filling, which was due on the day Michael Jackson died. The filling said that Jackson's total estate was worth $7million in taxable value. The IRS challenged this and, in May of this year (2013), issued the estate a tax deficiency notice for $505.1 million in taxes and $196.9 million in penalties.

According to court documents, Jackson's image and likeness was valued by his estate at $2,105, while the IRS said its taxable value was $434million. Jackson's recording assets, valued at $469million by the IRS, were not valued in the singer's 2009 filling.

A spokesman for Jackson's estate said the IRS' valuations "were based on speculative and erroneous assumptions unsupported by the facts or law". He also revealed that the estate has paid over $100million in taxes.

The Jackson estate will not have to pay the $702million in back taxes and penalties unless the US Tax Court rules in favour of the IRS.

Read More On This Artist

Michael Jackson Merchandise
More News
Hot Chip share video for new song 'Need You Now' - watch
Judas Priest launch their own brand of coffee to celebrate 35th anniversary of 'British...
The Vaccines share sci-fi 'Dream Lover' video - watch
Leon Bridges announces debut album 'Coming Home'
The Rolling Stones 'floating the idea' of playing 'Sticky Fingers' in full on...
Save Soho campaign announce London club night The Residency
The Beatles' Ringo Starr pays tribute to Cynthia Lennon
East London venue Rich Mix facing closure
O2 Priority Tickets for James Bay, The War On Drugs and Action Bronson available now
Swedish parliament votes to keep law banning dancing in public
John Lennon's former wife Cynthia dies following battle with cancer
Damon Albarn says Blur were 'too young and stupid' to value their relationship in the past
Scott Weiland guitarist Jeremy Brown dies aged 34
Vine of Maple The Dog playing drums to White Stripes' 'Seven Nation Army' goes viral
Glasgow's Arches venue saved from shutting as council rejects police closure order
Midweek chart update: The Prodigy outselling James Bay two to one in race for top spot
Run The Jewels' third album will be 'the hardest shit you've ever heard'
Paul McCartney says he finds inspiration for new songs on the toilet
Lana Del Rey and Grimes to tour US together this summer
Avril Lavigne says she 'thought she was dying' following Lyme Disease diagnosis
Madame Tussauds hire 'tissue attendants' to dry eyes of teary One Direction fans after...
The Cribs claim that 'old school dinosaurs' have blocked their efforts to become a...

More News

Comments

Please login to add your comment.

Latest Tickets - Booking Now
 
Know Your NME
 

 
NME Store & Framed Prints
Inside NME.COM