Posted on 08/24/2013 10:29:23 PM PDT by bkopto
The estate of pop music legend Michael Jackson owes $702 million in federal taxes and penalties, the Internal Revenue Service charged in U.S. Tax Court, accusing the estate of undervaluing some of the star's assets by hundreds of millions of dollars.
At issue is the wide difference between what the estate said Jackson's legacy was worth versus what the IRS determined was its taxable value.
An IRS spokesman and lawyers for the estate declined to comment. Jackson died on June 25, 2009, the date of the estate tax return. His estate's beneficiaries are Jackson's mother, Katherine, his three children and charities.
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, according to Tax Court documents dated Tuesday.
Jackson's image and likeness were valued by the IRS at $434 million. The estate said its taxable value was $2,105.
The largest taxable item was the estate's stake in some of Jackson's recording assets, listed as MJ/ATV Publishing Trust interest in New Horizon Trust II, which was valued at $469 million by IRS. It was not valued in the 2009 estate filing.
The IRS's alleged tax deficiency also includes some items that were overvalued by the estate.
A Jackson estate spokesman said the IRS's appraisal values "were based on speculative and erroneous assumptions unsupported by the facts or law." The Jackson estate has paid $100 million in taxes, he said on Friday. Under Tax Court rules, the Jackson estate will not need to pay any taxes or penalties unless the court rules in favor of the IRS.
(Excerpt) Read more at music.yahoo.com ...
So are we talking about Jackson's hacked-up face? Snort! /s
MJ should have taken the route of Bill Gates and Warren Buffett, turning over his fortune to a charitable trust.
Not that such a trust would use the monies for anything worthwhile, but just to keep the Feds out.
$700 million in taxes?
They should be paying on what they earn, not what the feds think can be earned.
The Piper is paying the Rats Black Mail ... to follow him...
“Michael Jackson estate owes $702 million in taxes”
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That would be ALMOST enough to pay for Obumbo’s next vacation.
Watch the Feds grab the Beatles catalog owned (?) by the estate, for distribution to us all poor Obamafoam users foo stam eaters.
They make up these tax figures and then when the tax returns are filed it turns out to be not much.
California does that, they would send me tax bills greater than my entire business gross, yet I have never owed state income tax when my taxes were figured, not even close to it.
One of the “holy grails” of the left has been to tax hypothetical “metaworth” of something rather than actual real world value/income.
There have even been suggestions to tax video game “income”, even if it has no real world value.
So that nice sword you just picked up in a dungeon crawl would cost you whatever some tax rodent thinks it would be worth.
Ganking MJ’s estate like this over hypothetical metaworth would be a step towards doing the same to everyone.
Insanity.
I say let the freak rest in peace..
I din doo nuffins!
The country is broke and the greedy estate is cheating us all!
Watch out George Zimmerman, watch out family of Edward Snowden the “U.S. Agency” will come after you too, like it went after Al Capone, you gangsters!
“Jackson’s image and likeness were valued by the IRS at $434 million. The estate said its taxable value was $2,105.”
Image and likeness? Send the IRS a couple of 3x5’s and it should more than pay the bill.
Normal people pay their taxes every year.
How in the world do they let celebutards rack up such huge amounts of tax debt?
I can see how this can be abused.
bkopto, we here at the IRS have determined that your image and likeness is worth $1 million, please pay taxes of $300,000 immediately.
exactly but this is going to give Kalipornia some ideas
tax court rules in favor of the irs almost all the time.
How much is the image and likeness of a Kenyan who thinks he is a demi-god worth. Seems to me the Obama's image is worth a great deal too.
As much as I dislike the Jackson family parasites, this would only be news if Jesse were involved.
This isn’t earned income.
This is IRS fantasyland, asset worth estimation.
This falls under estate tax law, which is a specialized area unlike income tax law.
How about we not trust the IRS.
That would be wise, no?
I don’t see why he didn’t have all his assets in a trust to benefit his heirs, like most other rich families do. It would avoid all estate taxes (which is why the estate tax raises no money).
By the time the board making the distribution of the siezed Beatle Book regulates dispersal , there will be nothing left to distribute to the masses.
The Democrat Party is a criminal enterprise
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