[ 2014-02-09 ]

The late Michael Jackson

Michael Jackson estate owes $702 million
The Michael Jackson Estate is being pursued for
$702 million in unpaid taxes by the US' Internal
Revenue Service after being accused of
undervaluing assets following the singer's death
in 2009.

The Internal Revenue Service (IRS) accused the
late 'Thriller' hitmaker's executors of
significantly undervaluing assets following the
singer's death in 2009, and has launched a legal
battle in a bid to secure $505 million and an
additional $197 million in penalties.

In U.S. Tax Court documents in Washington,
obtained by the Los Angeles Times newspaper, the
agency claims the estate inaccurately placed the
star's net worth at slightly more than $7 million
when Michael died after an overdose of a
surgical-grade anesthetic, and argue he was
actually worth $1.125 billion.

The IRS said that the estate's original tax return
was so inaccurate that it qualified for a gross
valuation misstatement penalty, which would allow
the government to double the usual 20 per cent
penalty for underpayment.

Most of the dispute centres on the value of
Jackson's image and likeness, which the estate
placed at just $2,105 and the IRS believes should
have been $434.26 million.

The agency also valued the star's interest in a
trust that includes the rights to some of his
biggest hits and most of the Beatles catalogue,
including 'Yesterday,' 'Sgt. Pepper's Lonely
Hearts Club Band' and 'Get Back,' at $469 million
but the estate gave it zero value.

The IRS also believes Jackson's interest in
another trust was worth $60.6 million, not $2.2
million, as the estate claimed.

If the court rules in the IRS' favour, the estate
could be forced to sell some of its assets or
strike a deal to pay back the money over 15 years.

Source - Bang Showbiz

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