The Michael Jackson Estate is in the crosshairs of the IRS for allegedly cheating taxpayers out of a fortune … and now the taxman wants the Estate to pay the piper — to the tune of more than $700 million.
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. So far no word back.
Read more: https://www.tmz.com#ixzz2skkngn9F