So according to both The Los Angeles Times and TMZ, Michael Jackson’s estate just go hit with an IRS bill for HUNDREDS of MILLIONS of dollars. OUCH. The IRS claim that the estate has lied about Jackson’s net worth when he passed away and thus have declared that they would like $702 million in unpaid taxes and fines plz.
Apparently MJ’s estate claimed the iconic artist was only worth $7 million at his time of death in 2009. Hmmmm… now I’m no entertainment lawyer but that seems prettttty low for someone who holds several record sales records globally. The IRS were also suss on this figure and after doing some digging they deduced that MJ was actually worth $1.125 BILLION. Damn…
Because of this monumental discrepancy the IRS says the MJ estate owes taxpayers $505 million in unpaid taxes and $197 million in fines. Furthermore, to illustrate to the estate that this was no “Send Paris Hilton to Jail for one Hour” type punishment the IRS doubled the tax penalty from 20% to 40%.
The LA Times has outlined the discrepancies below. Not sure where in the hell MJ’s Estate’s pulled these figures, but hot damn, I have not seen something this severely undervalued since I looked in the mirror this morning…
Michael Jackson’s image:
His estate claims it’s valued at only $2,105. (Really guys?)
The IRS claims it’s valued at $434.264 million.
Michael Jackson’s interest in the trust that owns the catalog of his own songs and the Beatles’ songs:
His estate claims it’s valued at ZERO dollars and ZERO cents.
The IRS claims it’s valued at $469 million.
During the wrongful death suit, a public accountant testified that Michael Jackson took out a $320 million loan against the music catalog. The IRS also says that another trust his Estate claims is worth $2.2 million is actually worth $60.6 million. MJ’s Estate stated that the Jackson 5 master recordings are valued at $11.2 million, but the IRS thinks they’re valued at $45.5 million.
The IRS are taking this one to court and have apparently hired some of the best lawyers in the country. Looks like Joe Jackson better get a Kickstarter campaign cranking to fight this because it looks like they’re gonna need it…