Michael Jackson’s Estate Owes $702 Million in Backed Taxes

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  • As the old saying goes, there are two things guaranteed in life: death and taxes.

    And, that even means if you are the late Michael Jackson.

    According to TMZ, the estate of the late superstar owes the IRS $702 million in backed taxes.

    The gossip site reports:

    The allegations are stunning.  According to legal docs — obtained by the L.A. Times — when Michael died the executors told the IRS his net worth was around $7 million.  The IRS now says MJ’s net worth was actually $1.125 BILLION!

    And in a HIGHLY unusual move, the IRS claimed executors so grossly misled the agency, it doubled the tax penalty — from 20 – 40%.  So the IRS claims the Estate didn’t pay $505 million worth of taxes, and when you add the 40% it comes to more than $702 Million.

    As for what the agency says was under-reported:

    – The Estate valued MJ’s likeness at $2,105. The IRS says the value is actually more than $434 million.
    – The Estate valued Michael’s interest in a trust that owns songs by MJ and the Beatles at ZERO!  The IRS says its more like $469 million.
    – There’s another MJ trust the Estate claims is worth $2.2 mil.  The IRS says it’s worth $60.6 mil.
    – The Estate valued the Jackson 5 master recordings at $11.2 mil.  The IRS says $45.5 mil.

    It’s pretty clear the Estate will fight this like crazy, but worst case scenario the taxes could wipe out what the Estate has made since MJ’s death … which could be devastating for Michael’s kids.

    We contacted a rep for the Estate who says they stand by their initial statements on the matter … telling us, “The Estate of Michael Jackson disputes the IRS position in its entirety.”

    The rep adds, “The Estate used independent, nationally-recognized and highly-qualified expert appraisers in determining the value of the Estate’s assets. By contrast, the IRS consultant’s values are not based on standard appraisal methodology, but rather are speculative and erroneous assumptions unsupported by the facts or law. The Estate has paid over $100 Million dollars in taxes and is in full compliance with the tax laws.”

    Hopefully, the estate can get this all figured out.

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    Comments

    7 thoughts on “Michael Jackson’s Estate Owes $702 Million in Backed Taxes

    1. The author of this article should use correct English especially in the title. It is Back taxes, not backed. Anything financial that is backed has money set aside somewhere to secure a loan or debt.

    2. Again, those who make the rules also Change the rules when it is in THEIR best interest. This is just another example of the GREED that America suffers from.

      • I agree with you totally jermaine but when it comes to the I.R.S. I can honestly say they are not biase when it comes to paying them.We put these stars on a high horse above life and in their minds they think they are untouchable.I messed up with the I.R.S. and have been paying them for 5 years deducted out of my check,so everytime i hear that the Government is making some famous person pay(dead or alive) i’m not going to lie i’m thrilled

        • I certainly understand how you feel. I just think that Michale’s numbers have been grossly blown up so that someone else can pocket that money.

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