The Ongoing Tax Saga of the Michael Jackson Estate
In a story that continues to evolve, the Michael Jackson estate is facing a fierce battle with the IRS over the late pop icon’s net worth at the time of his death. Two years ago, in 2023, it was revealed that the estate’s executors had reported Jackson’s net worth as $7 . However, the IRS -on-bet” target=”_blank”> contests that his actual net worth was a staggering $1.125 billion! As a result of this discrepancy, the IRS claims that the estate failed to pay $505 million worth of taxes. Add to this an unprecedented 40% tax penalty, and the total amount allegedly owed is a whopping $702 million. The estate is adamantly disputing these claims and preparing to mount an aggressive legal defense.
Here is what the IRS claims the estate underreported:
Disputed Valuations
- 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.
The Estate’s Response
The Michael Jackson estate plans to fight these allegations, charges, and penalties. A representative of the estate conveyed to the LA Times, “The Estate of Michael Jackson disputes the IRS position in its entirety.” This individual also noted that the estate’s valuations were determined by independent, nationally-recognized and highly-qualified expert appraisers. They further criticized the IRS’s values as speculative and erroneous assumptions unsupported by the facts or law, and highlighted that the Estate has paid over $100 Million dollars in taxes and is in full compliance with the tax laws.”
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