Washington: The Michael Jackson Estate is being pursued for $702 mn in unpaid taxes by the US Internal Revenue Service after being accused of undervaluing assets following the pop legend’s tragic death in 2009.
The Internal Revenue Service (IRS) accused the late ‘Thriller’ hitmaker’s executors of significantly undervaluing assets, and has launched a legal battle in a bid to secure $505 mn and an additional $197 mn in penalties, Contactmusic reported.
In the US Tax Court documents in Washington, obtained by the Los Angeles Times, the agency claims the estate inaccurately placed the popstar’s net worth at slightly more than $7 mn when Michael died after an overdose of a surgical-grade anesthetic, and argue he was actually worth $1.12 bn.
The IRS said the estate’s original tax return was so inaccurate that it qualified for a gross valuation misstatement penalty, which would allow the government to double the usual 20% penalty for underpayment.