Michael Jackson Net Worth 2013 About to Plummet; Owes $702 Million in Taxes
By Staff Writer | August 24, 2013 01:57 PM EDT
Michael Jackson’s net worth 2013 is getting him in trouble with the feds. The IRS charged Michael Jackson’s estate with undervaluing the former “Prince of Pop”’s assets by hundreds of millions of dollars.
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Michael Jackson’s estate is going to have to come up with $702 million to cover federal taxes and penalties. The Internal Revenue Service went to U.S. Tax Court to siphon Michael Jackson’s net worth.
The amount of money that Michael Jackson’s estate is going to have pay hadn’t been disclosed in the court challenge filed in July. The estate of Michael Jackson is fighting the charges. They say there is a vast difference between Michael Jackson’s net worth and what the IRS says the taxable value.
Neither the IRS, nor lawyers for Michael Jackson’s estate has made any comment.
Michael Jackson died on June 25, 2009, which is the date of the tax return for his estate. Michael Jackson’s estate listed his mother, Katherine, his three children and charities as his beneficiaries.
The 2009 tax filing from the estate claimed that the total Michael Jackson had a $7 million taxable value. The IRS issued the estate tax deficiency notice for $505.1 million in taxes and $196.9 million in penalties in May.
According to Tax Court documents that were filed on Tuesday, the estate's 2009 tax filing said the total Jackson estate had a $7 million taxable value. In May, the IRS issued the estate a tax deficiency notice for $505.1 million in taxes and $196.9 million in penalties. The IRS valued Michael Jackson's image and likeness at $434 million. Michael Jackson’s estate put the taxable value was only $2,105.
The music got him. The estate’s stake in the interest generated by MJ/ATV Publishing Trust, Michael Jackson’s recording assets according to New Horizon Trust II, was the largest taxable item, according to the IRS. The 2009 Michael Jackson estate filing gave it no value. The alleged deficiency claimed by the IRS also included some items that the tax collection agency said the estate overvalued.
A spokesman for Michael Jackson’s estate said the Jackson estate paid $100 million in taxes. He said the IRS appraisal values "were based on speculative and erroneous assumptions unsupported by the facts or law."
Michael Jackson’s estate won’t have to pay any taxes or penalties if the courts rule against the IRS, under the rules of the Tax Court.
Michael Jackson died an overdose of the surgical anesthetic propofol. He was 50 years old. The pop music icon was rehearsing for a series of comeback concerts in London.
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