Celebrity Gossip

Michael Jackson Estate embroiled in major tax-cheating scandal

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Michael Jackson Estate embroiled in major tax-cheating scandal: IRS slams executors with $702 MILLION bill

  • Legal documents show executors of Michael Jackson’s estate valued the singers net worth at $7 million after he died in June 2009
  • The IRS now says the net worth was actually $1.125 billion
  • The estate has subsequently been hit with $505 million in taxes and an additional $197 million for ‘gross valuation misstatement penalty’
  • Among the disputed values, the estate said a trust that holds interest from some of Jackson’s music and most of the Beatles catalog was worth $0
  • The IRS said it was worth $469 million
‘This is something unusual,’ Andrew Katzenstein, an estate tax expert at the law firm Proskauer Rose, told the L.A. Times.

‘He was one of the premier entertainers of our time. So there are really no comparables, and it leaves the valuation question open to a huge range of possibilities.’
The Jackson estate would like have argued that, before he died, the singer had neither toured nor released a CD for several years, and his public image had been severely damaged by allegations of child molestation.

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