Michael Jackson estate fights U.S. IRS in Tax Court--Reuters

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Offline bec

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http://news.yahoo.com/michael-jackson-estate-fights-u-irs-tax-court-232535232.html

Quote
Michael Jackson estate fights U.S. IRS in Tax Court


Reuters
Patrick Temple-West 4 hours ago Internal Revenue Service

By Patrick Temple-West

WASHINGTON (Reuters) - The estate of pop music legend Michael Jackson is fighting the Internal Revenue Service over taxes and penalties levied on a wide range of the star's assets, including the Neverland Ranch, his "image and likeness" and some recording properties, according to court documents.

The estate's challenge, filed in U.S. Tax Court, does not disclose any dollar amounts, suggesting the differences in estate taxes paid and allegedly owed could be significant, said tax lawyers who reviewed the court filings on Tuesday.

The dispute centers on the value of estate assets at the time of Jackson's death on June 25, 2009. Some assets, such as the star's image and likeness, are extremely difficult to value for tax purposes.

Under tax law, the penalties associated with the IRS's allegations could be as high as 40 percent of the difference between the taxes paid and those allegedly owed for some of the items.

Though dollar amounts in the documents are redacted, the IRS's deficiency notice said the tax agency levied penalties on the value of Sycamore Valley Ranch Company LLC, which includes the Neverland Ranch, according to the court filings.

The IRS issued to the estate a tax deficiency notice in May and the estate filed its challenge in Tax Court on July 26. The IRS has 60 days to respond to the Tax Court challenge.

Negotiators for the IRS and the estate have held meetings for more than a year to try to resolve the valuation differences, said Charles Rettig, one of the lawyers representing the Jackson estate. He declined to say how much in taxes and penalties are in dispute.

"The government believes estates of celebrities likely have a significant audit potential," Rettig said on Tuesday. "The estate believes the estate tax return properly reflected the interests of Mr. Jackson as of the date of his death."

An IRS spokesman declined to comment.

Under Tax Court rules, the Jackson estate will not need to pay any taxes or penalties unless the court rules for the IRS.

Jackson died at age 50 from an overdose of the surgical anesthetic propofol while rehearsing for a series of comeback concerts in London.

"The Michael Jackson estate was on a clear collision course with the Tax Court," said Bridget Crawford, a tax professor at Pace Law School, who reviewed the Tax Court filings.

(Reporting By Patrick Temple-West; Additional reporting by Eric Kelsey; Editing by Howard Goller and Ken Wills)

Uh? I'm perplexed by this.
Are you entertained?

Offline Thriller4ever

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I don't understand any of this bec...i'm gonna go n google. is there anything strikingly odd in this news report?
twitter: @ComfortablyGeek

Offline suspicious mind

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i am gonna sound nutter again here but didn't someone drop by a while back and make a post about obama doing something ( some kind of legislation , bill or something ) that would make the government able to take neverland ?..............ok back to my corner
"I am sending you out like sheep among wolves. Therefore be shrewd as serpents and as innocent as doves."  




Why not just tell people I'm an alien from Mars? Tell them I eat live chickens and do a voodoo dance at midnight. They'll believe anything you say, because you're a reporter. But if I, Michael Jackson, were to say, "I'm an alien from Mars and I eat live chickens and do a voodoo dance at midnight," people would say, "Oh, man, that Michael Jackson is nuts. He's cracked up. You can't believe a single word that comes out of his mouth."

Online ~Souza~

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Crafty little shit. How can people think he is in debt when he never pays anything or anyone, waits till he gets sued then settle for half the amount or even less to nothing at all?  He would get zero credit if he would buy something from me!

Offline applehead250609

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http://news.yahoo.com/michael-jackson-estate-fights-u-irs-tax-court-232535232.html

Quote
Michael Jackson estate fights U.S. IRS in Tax Court


Reuters
Patrick Temple-West 4 hours ago Internal Revenue Service

By Patrick Temple-West

WASHINGTON (Reuters) - The estate of pop music legend Michael Jackson is fighting the Internal Revenue Service over taxes and penalties levied on a wide range of the star's assets, including the Neverland Ranch, his "image and likeness" and some recording properties, according to court documents.

The estate's challenge, filed in U.S. Tax Court, does not disclose any dollar amounts, suggesting the differences in estate taxes paid and allegedly owed could be significant, said tax lawyers who reviewed the court filings on Tuesday.

The dispute centers on the value of estate assets at the time of Jackson's death on June 25, 2009. Some assets, such as the star's image and likeness, are extremely difficult to value for tax purposes.

Under tax law, the penalties associated with the IRS's allegations could be as high as 40 percent of the difference between the taxes paid and those allegedly owed for some of the items.

Though dollar amounts in the documents are redacted, the IRS's deficiency notice said the tax agency levied penalties on the value of Sycamore Valley Ranch Company LLC, which includes the Neverland Ranch, according to the court filings.

The IRS issued to the estate a tax deficiency notice in May and the estate filed its challenge in Tax Court on July 26. The IRS has 60 days to respond to the Tax Court challenge.

Negotiators for the IRS and the estate have held meetings for more than a year to try to resolve the valuation differences, said Charles Rettig, one of the lawyers representing the Jackson estate. He declined to say how much in taxes and penalties are in dispute.

"The government believes estates of celebrities likely have a significant audit potential," Rettig said on Tuesday. "The estate believes the estate tax return properly reflected the interests of Mr. Jackson as of the date of his death."

An IRS spokesman declined to comment.

Under Tax Court rules, the Jackson estate will not need to pay any taxes or penalties unless the court rules for the IRS.

Jackson died at age 50 from an overdose of the surgical anesthetic propofol while rehearsing for a series of comeback concerts in London.

"The Michael Jackson estate was on a clear collision course with the Tax Court," said Bridget Crawford, a tax professor at Pace Law School, who reviewed the Tax Court filings.

(Reporting By Patrick Temple-West; Additional reporting by Eric Kelsey; Editing by Howard Goller and Ken Wills)

Uh? I'm perplexed by this.

So do I lol  :LolLolLolLol:   :WTF: !!!
Goddamn even the Federal Government is trying to come for Mike's money. Hell by all that has been going on over the past year I may even put my name in the hat to get some of MJ's cash and stuff. But hey if Lauryn Hill got to pay so does even the estate of the King of Music.
So now MJ will be funding foodstamps, EBT, and federal employee salaries    :computer-losy-smiley:  :icon_lol: :icon_lol: ?

Offline Snoopy71

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I'm just skimming over this article (it's 2 a.m. and I can't sleep).....but it sounds like they are attempting to put a lien on Neverland for back owed taxes. :icon_e_confused:

My guess is the estate filed "estimated" taxes on the value of Neverland and MJ's net worth at the time of his death and it's now rearing it's ugly head some 4 years later.

Considering the huge jump in his net worth since then, it's no wonder it has red flagged the IRS...yet again. :suspect:


http://www.cbsnews.com/2100-207_162-5151555.html

AP/ July 10, 2009, 6:52 PM

Big Tax Bill Looms For Jackson Estate

The Tax Man is in the mirror for the estate of the late King of Pop.

Creditors and heirs of Michael Jackson hoping for a cut of his musical empire will have to line up with the Internal Revenue Service, which could lay claim to $80 million or more in federal estate taxes.

To settle his tax bill, the executors of his estate may have to sell or borrow against lucrative but hard-to-value assets or ask the IRS for a multi-year extension. That could allow the estate to pay the tab over time with earnings from Jackson's share in rights to songs by the Beatles and his own music - prized properties whose value will likely make the estate's tax bill only bigger.

"The government is not going to take a Beatles record as payment. They want to be paid in cash," said Roy Kozupsky, a veteran estate lawyer in New York who has worked on behalf of several wealthy clients.

Given the convoluted nature of Jackson's finances, coming up with the cash won't be easy. Technically, the tax bill is due nine months after the date of death. In special cases, estates can spread out the payments for a period of up to 14 years. Once paid, the tax bill could dramatically shrink the inheritance passed on to the pop star's heirs - his 79-year-old mother and three children.

"It's going to mean less money going to the beneficiaries," said Lawrence Heller, a partner in the tax and estate practice of the law firm Bryan Cave in Santa Monica, Calif. "They're the ones that are going to suffer."

The estate's tax dilemma highlights the cost and complexity of dying wealthy in America. Ironically, had Jackson died six months later, his estate may have had to pay no estate tax at all.

Under current law, the estate tax is set to be lifted for one year starting Jan. 1, 2010. However, most experts expect Congress to overturn the one-year suspension before the end of 2009, meaning the estate tax would remain in place.

Established in the early 1900s, the so-called "death tax" assesses up to a 45 percent tax on individual estates worth more than $3.5 million.

As in a bankruptcy case, Jackson's creditors will jockey for first crack at his fortune. But the estate's initial obligation will be to pay the late star's taxes, said Beth Kaufman, a Washington-based attorney specializing in estate tax issues.

"There is no question that the U.S. government has first priority," she said.

To calculate the amount owed, subtract an estate's debts from its assets and set aside 45 percent of what's left for the IRS. The first $3.5 million is exempt. The IRS also allows unlimited, tax-free transfers of assets to a spouse and charities, as well as deductions for funeral expenses, attorneys' fees and other administrative costs.

The current value of Jackson's estate isn't known, making it impossible to know how much he'll owe in federal estate tax.

According to documents obtained by The Associated Press, he claimed $567.6 million in assets as of March 31, 2007, including Neverland and his share of the Sony/ATV Music Publishing catalog, which holds the rights to songs by the Beatles, Bob Dylan and other artists. The documents also show that Jackson had $331 million in debt.

That would leave him with a net worth about $236 million at the time. Based on that number, Jackson's federal estate tax bill could exceed $83 million after exemptions. California, where Jackson lived at the time of his death, has no estate tax, but some states do.

Representatives of Jackson's estate declined to comment.

The pop icon died June 25 of what his family said was cardiac arrest. According to his will, all of Jackson's assets will go into a trust. The twice-divorced entertainer left 20 percent of his estate to charities. That could leave 80 percent of his net estate subject to "a very sizable" death tax, said Randy Godshall, an estate attorney at Los Angeles-based Sheppard Mullin law firm.

"But there will no doubt be a lot of negotiation with the IRS on that, because his assets are hard to value," Godshall said.

The IRS is not required to accept the estate's appraisal of Jackson's assets, and very likely will conduct its own audit, he said.

"They'll often come back with their own, higher values - I've never heard of them coming back and saying, 'You overvalued this'," he said.

The IRS declined to comment, citing federal rules prohibiting it from discussing individual taxpayers.

If the two sides can't agree, the case would go into litigation. In rare cases, the IRS can seize assets to cover a tax bill, but usually settlements are reached.

Worries over estate tax were a big factor in the lengthy legal battle over the estate of singer James Brown, who died of heart failure on Christmas Day, 2006. A judge in May approved a settlement that gives nearly half of his assets to a charitable trust, about a quarter to his wife and young son, and the rest to Brown's adult children. The IRS won't say how much tax is owed on his estate.

The federal estate tax affects less than 1 percent of the U.S. population. It will generate an estimated $26 billion this year - only about 1 percent of federal tax revenue. Still, the estate tax has become the subject of political debate in recent years.

In Washington, some Republican lawmakers want to abolish it. Others have called for exempting estates up to $10 million from the tax. They also want estates larger than that to be taxed at a 35 percent rate.

As it stands now, the threshold for the estate tax is set to fall back to $1 million in 2011, but the Obama administration is expected to change that so the tax will still kick in at $3.5 million.

None of the proposed changes would impact Jackson's estate, whose tax bill is technically due March, 25, 2010. Experts say it's likely the IRS will grant a multi-year extension. But even then, the estate would still have to begin paying interest in March.

Jackson's estate may have planned for a big estate tax bill. He had an insurance trust in his name as of Aug. 26, 2003, according to a financial document addressed to the singer and obtained by the AP. Insurance trusts are often set up by estates to pay federal estate tax.

One possible wild card: Jackson's estate could claim that his debt exceeds his assets, in which case he'd owe no estate tax.

But "it would be hard to incur that kind of liability," Kozupsky said, noting that creditors would be wary of such debt-ridden borrowers. He noted we may never learn the amount of Jackson's estate tax bill since the IRS isn't required to say.

"It could remain a mystery for quite a while," Kozupsky said.




Offline sweetsunsetwithMJ

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http://news.yahoo.com/michael-jackson-estate-fights-u-irs-tax-court-232535232.html

Quote
Michael Jackson estate fights U.S. IRS in Tax Court


Reuters
Patrick Temple-West 4 hours ago Internal Revenue Service

By Patrick Temple-West

WASHINGTON (Reuters) - The estate of pop music legend Michael Jackson is fighting the Internal Revenue Service over taxes and penalties levied on a wide range of the star's assets, including the Neverland Ranch, his "image and likeness" and some recording properties, according to court documents.

The estate's challenge, filed in U.S. Tax Court, does not disclose any dollar amounts, suggesting the differences in estate taxes paid and allegedly owed could be significant, said tax lawyers who reviewed the court filings on Tuesday.

The dispute centers on the value of estate assets at the time of Jackson's death on June 25, 2009. Some assets, such as the star's image and likeness, are extremely difficult to value for tax purposes.

Under tax law, the penalties associated with the IRS's allegations could be as high as 40 percent of the difference between the taxes paid and those allegedly owed for some of the items.

Though dollar amounts in the documents are redacted, the IRS's deficiency notice said the tax agency levied penalties on the value of Sycamore Valley Ranch Company LLC, which includes the Neverland Ranch, according to the court filings.

The IRS issued to the estate a tax deficiency notice in May and the estate filed its challenge in Tax Court on July 26. The IRS has 60 days to respond to the Tax Court challenge.

Negotiators for the IRS and the estate have held meetings for more than a year to try to resolve the valuation differences, said Charles Rettig, one of the lawyers representing the Jackson estate. He declined to say how much in taxes and penalties are in dispute.

"The government believes estates of celebrities likely have a significant audit potential," Rettig said on Tuesday. "The estate believes the estate tax return properly reflected the interests of Mr. Jackson as of the date of his death."

An IRS spokesman declined to comment.

Under Tax Court rules, the Jackson estate will not need to pay any taxes or penalties unless the court rules for the IRS.

Jackson died at age 50 from an overdose of the surgical anesthetic propofol while rehearsing for a series of comeback concerts in London.

"The Michael Jackson estate was on a clear collision course with the Tax Court," said Bridget Crawford, a tax professor at Pace Law School, who reviewed the Tax Court filings.

(Reporting By Patrick Temple-West; Additional reporting by Eric Kelsey; Editing by Howard Goller and Ken Wills)

Uh? I'm perplexed by this.

Well you shouldn't because perhaps MJ's Estate is trying to get MJ tax issues settled completely by a court of law to be clear in case he BAMS in order to show the world he didn't fake his death to avoid any tax payment I think he wants to prepare his comeback in a perfect way to avoid any problem, I don't know if this makes sense to you Bec.
I WANNA BE WHERE YOU ARE!!

Offline Shamone Jackson

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So do I lol  :LolLolLolLol:   :WTF: !!!
Goddamn even the Federal Government is trying to come for Mike's money. Hell by all that has been going on over the past year I may even put my name in the hat to get some of MJ's cash and stuff.


Love your avatar!  That was my favorite part from that video.  :icon_e_biggrin:

Offline bec

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It does @sunset, good point.
Are you entertained?

Offline applehead250609

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So do I lol  :LolLolLolLol:   :WTF: !!!
Goddamn even the Federal Government is trying to come for Mike's money. Hell by all that has been going on over the past year I may even put my name in the hat to get some of MJ's cash and stuff.


Love your avatar!  That was my favorite part from that video.  :icon_e_biggrin:

Thank you Shamone  :bearhug:,that video is delicious  :michael_jackson-1135: !!!


Offline sweetsunsetwithMJ

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It does @sunset, good point.

It would be the only way to appear clear in public eye so there is no room for gossip about it.
I WANNA BE WHERE YOU ARE!!

Offline MaryK

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U.S. agency says Michael Jackson estate owes $702 million in taxes

By Patrick Temple-West
WASHINGTON | Fri Aug 23, 2013 5:15pm EDT

(Reuters) - The estate of pop music legend Michael Jackson owes $702 million in federal taxes and penalties, the Internal Revenue Service charged in U.S. Tax Court, accusing the estate of undervaluing some of the star's assets by hundreds of millions of dollars.

The dollar amounts in dispute had not been previously disclosed in the court challenge that the Jackson estate filed in July to a bill from the IRS, the U.S. tax-collecting agency.

At issue is the wide difference between what the estate said Jackson's legacy was worth versus what the IRS determined was its taxable value.

An IRS spokesman and lawyers for the estate declined to comment.

Jackson died on June 25, 2009, the date of the estate tax return. His estate's beneficiaries are Jackson's mother, Katherine, his three children and charities.

The estate's 2009 tax filing said the total Jackson estate had a $7 million taxable value. In May, the IRS issued the estate a tax deficiency notice for $505.1 million in taxes and $196.9 million in penalties, according to Tax Court documents dated Tuesday.

Jackson's image and likeness were valued by the IRS at $434 million. The estate said its taxable value was $2,105.

The largest taxable item was the estate's stake in some of Jackson's recording assets, listed as MJ/ATV Publishing Trust interest in New Horizon Trust II, which was valued at $469 million by IRS. It was not valued in the 2009 estate filing.

The IRS's alleged tax deficiency also includes some items that were overvalued by the estate.

A Jackson estate spokesman said the IRS's appraisal values "were based on speculative and erroneous assumptions unsupported by the facts or law." The Jackson estate has paid $100 million in taxes, he said on Friday.

Under Tax Court rules, the Jackson estate will not need to pay any taxes or penalties unless the court rules in favor of the IRS.

Jackson died at age 50 from an overdose of the surgical anesthetic propofol while rehearsing for a series of comeback concerts in London.

(Reporting by Patrick Temple-West; Editing by Kim Dixon, Howard Goller and Bill Trott)


http://www.reuters.com/article/2013/08/23/entertainment-us-usa-tax-jackson-idUSBRE97M0YN20130823
You and I were never separate

It's just an illusion

Wrought by the magical lens of Perception



Offline Snoopy71

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...Michael Jackson owes ....$702 million in federal taxes and penalties ...

Sweet Jesus!








« Last Edit: August 23, 2013, 08:15:13 PM by Snoopy71 »

Offline MaryK

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Yes, really insane.

Here´s an article from Forbes, regarding the subject.

Why The $702 Million IRS Tax Claim On Michael Jackson's Estate Won't Stand Up

Michael Jackson has earned over half a billion dollars since his death–and now Uncle Sam wants a piece of the action.

Earlier today reports surfaced saying that the IRS is hitting Jackson’s estate with a $702 million bill, including $505.1 million in taxes and $196.9 million in penalties.

The estate will not be forced to pay any penalties unless the court rules in favor of the IRS, but those in charge of Jackson’s empire were nonetheless displeased with the news.

“The executors are disappointed the IRS continues to overreach in this matter but firmly believes all issues will be resolved in favor of the estate and the beneficiaries,” said attorney Howard Weitzman in a statement, which also noted that the estate has paid over $100 million in taxes and is “in full compliance with the tax laws.”

An IRS spokesperson declined to comment, citing Section 6103 of the tax code, which prevents the organization from discussing individual tax situations.

So will the estate actually end up having to fork over $702 million to Uncle Sam? It seems unlikely for a number of reasons, and the proverbial devil is in the details.

First of all, it’s important to understand that the IRS’s claims are related to estate tax, not income tax. In 2009, the year Jackson passed away, the maximum federal rate was 45% of net assets–implying that the IRS believes Jackson was worth in the neighborhood of $1.5 billion at the time of his death.

Though the King of Pop was a much savvier businessman than most people realize and amassed an incredible collection of assets throughout his career, he was most certainly not a billionaire on June 25th, 2009. He did not appear on FORBES’ list of billionaires that year, or any other year, for that matter.

Jackson did hold hundreds of millions of dollars in assets, namely his 50% share in the Sony SNE +2.54%/ATV catalogue, which industry experts believed to be worth as much as $750 million at the time (and is worth far more now). There were other entities, too, including his Mijac music catalogue, real estate and a massive art collection.

But Jackson also carried nearly half a billion dollars in debt, meaning that his net assets were well under $1 billion–and likely less than the $702 million tax bill proposed today. The reports also suggest that a major component of the IRS bill revolves around the value of Jackson’s image and likeness. The tax agency is said to have put that number at $434 million, while the estate valued the rights at $2,105.

Though the latter seems very low, the former seems incredibly high–at the time of Jackson’s death, anyway–given the fact that the singer hadn’t scored an endorsement deal since 1993 and didn’t crack FORBES’ list of top-earning musicians in 2008, a year in which the Police earned $115 million to claim the top spot.

To be sure, the value of just about everything Jackson-related has skyrocketed in the years following his death. His image is once again a force to be reckoned with in the endorsement world, landing on everything from Pepsi cans to slot machines. Two Jackson-themed Cirque du Soleil tours are currently running–Michael Jackson One in Las Vegas and the Michael Jackson Immortal World Tour around the globe–and his music seems as popular as ever.

But estate taxes are levied on the value of assets at the time of death, not at the time the tax bill is issued or announced. And as a result, it seems unlikely that the tax court will rule in favor of the IRS getting its $702 million.

Of course, the whole issue would have been moot had Jackson died a year later: due to a legal quirk, there was no estate tax in 2010.

http://www.forbes.com/sites/zackomalleygreenburg/2013/08/23/why-the-702-million-irs-tax-claim-on-michael-jacksons-estate-wont-stand-up/
You and I were never separate

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Wrought by the magical lens of Perception



Offline applehead250609

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Update  ;):

A Jackson estate spokesman said the IRS's appraisal values "were based on speculative and erroneous assumptions unsupported by the facts or law".
The Jackson estate has paid $100m (£64m) in taxes, he said.

Speculative and erroneous  :icon_question:?? Sounds familiar to me lol   :LolLolLolLol: ........



Offline iamhere4mj

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Karen tweeted this:

Karen Faye ‏@wingheart Protected Tweets  · Oct 5
 
Branca is going to be haunted by the IRS for the rest of his life http://www.forbes.com/sites/janetnovack/2014/10/03/irs-we-made-a-mistake-valuing-michael-jacksons-estate/

12:57 PM - 5 Oct 2014 · Details

http://www.forbes.com/sites/janetnovack/2014/10/03/irs-we-made-a-mistake-valuing-michael-jacksons-estate/

IRS: We Made A Mistake Valuing Michael Jackson's Estate

The Internal Revenue Service says it made a mistake in valuing Michael Jackson’s estate.  Nope, the IRS hasn’t abandoned its much discussed claim for $702 million in extra taxes and penalties—a bill Jackson’s estate is fighting in U.S. Tax Court.  Instead, the tax agency is upping its demand by $29 million to nearly $731 million.

In a previously unreported court filing, the government says that IRS auditors originally thought the King of Pop owned only 50% of certain master recordings at his death in June 2009, when he really owned 100% of them.  That 100% interest was worth $91 million by the IRS’ figuring, compared to the $11 million reported on the Jackson estate tax return.

The change brings the IRS’ valuation of Jackson’s estate and lifetime taxable gifts up to $1.178 billion, compared to the $7 million the estate reported.  The IRS now wants a total of $525.6 million in tax and $205.1 million in gross valuation misstatement and negligence penalties.
(Any interest owed will be on top of that.)
Of course both the IRS and the estate’s values are best regarded as opening bids in what could be a long negotiation. A trial, if there is one, is far off.

Indeed, in a joint status report filed with the Tax Court  last month, lawyers for the government and the estate say that while they’re close to settling four relatively small issues and have dueling appraisers discussing the value of Jackson’s personal  tangible property, they  don’t expect a speedy resolution of the big dollar issues in the case. Those involve the value of Jackson’s intangible and intellectual property  (his name, likeness and his  interests in music he wrote or performed) as well as the value of two trusts he apparently set up to borrow against his assets and to transfer assets to his heirs at minimal tax cost during his life.

The two trusts hold Jackson’s music publishing rights as well as his 50% interest in a joint music publishing venture with Sony Corp.  Known as Sony/ATV Music Publishing, the venture is the largest music publishing company in the world and owns or administers millions of songs, including Beatles songs Jackson bought back in the 1980s.  The estate placed the value of the assets transferred through the two trusts at just $2.2 million, whereas the IRS says the taxable value was $527.5 million.

Forbes senior editor Zack O’Malley Greenburg, who wrote a recent book on the Jackson business empire, estimates the Jackson estate has earned more than $700 million since the singer’s death, as his music has had a resurgence, with new releases, two Cirque du Soleil shows based on his work , the concert film This Is It and even an endorsement deal with PepsiCo PEP +1.15%.   But at the time of his death, the economy was in the dumps and Jackson’s image was considerably less golden,  in part due to allegations of child molestation. It’s the value of his image at death that matters for estate taxes.

The estate valued Jackson’s name and likeness at a trifling $2,105, whereas the IRS contends they were worth $434 million.  Despite the unique circumstances surrounding Jackson, the resolution could well affect how other celebrity estates are taxed in the future.

The value of a celebrity’s image was also at issue in two recent U.S.  Tax Court decisions involving the income taxation of endorsement and appearance fees paid to professional golfers Sergio Garcia and Retief Goosen and is an issue in an ongoing Tax Court case involving best selling crime writer Karin Slaughter. Ironically, in those  cases, the IRS has tried to maximize Uncle Sam’s tax take by minimizing the value of such intellectual property, while taxpayers have argued (and Tax Judges have agreed) that  a celebrity’s image has substantial value.

Karen also tweeted this after she posted the link to the article:

Karen Faye ‏@wingheart Protected Tweets  • Oct 5

Pearl and her BeLievers should look for clues that MJ is undercover and working for the IRS...LOL RT @BrighaONeill: @wingheart Ha ha... Maybe he should try crowd-funding? I'm sure Estate supporters would be more than happy to contribute...Lol

5:36 PM - 5 Oct 2014 • Details


Love you Michael!


Offline NJackSwing91

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"In a previously unreported court filing, the government says that IRS auditors originally thought the King of Pop owned only 50% of certain master recordings at his death in June 2009, when he really owned 100% of them. "

I remember back during the Invincible era, one of the reasons Michael and Sony were at odds with each other was because Michael thought his master recordings would revert to him completely, but learned that it would still be many years before this happened.  In connecting this to the rumor that Michael was trying to fake his death back during the Invincible era, then it makes sense to me that he wanted to wait until he owned his master recordings 100% before faking his death.  Some people have thought that he couldn't fake his death back during Invincible because of 9/11, but this actually makes more sense. 


Offline iamhere4mj

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Here are 3 documents, latest being from Oct. 2014:

<a href="https://www.ustaxcourt.gov/InternetOrders/DocumentViewer.aspx?IndexSearchableOrdersID=138185" target="_blank">https://www.ustaxcourt.gov/InternetOrders/DocumentViewer.aspx?IndexSearchableOrdersID=138185</a>

June 23rd 2014 – case is stricken from the court’s trial calendar – placed on a status report track; status report is due by September 19th, 2014

This case is on the Court's November 17, 2014 trial calendar for Los Angeles, California. Although a very large deficiency is at stake, the Court learned in a call with the parties on June 20, 2014 that it raises mostly valuation questions. The parties are cooperating in informal discovery and want to try to settle as many issues as possible at IRS Appeals. The Court agrees with their suggestion that the case be put on a status-report track, and it is ORDERED that this case is stricken from the Court's November 17, 2014 trial calendar for Los Angeles. It is also ORDERED that on or before September 19, 2014 the parties shall file a status report describing their progress in settling the case or narrowing the issues to be tried. It is also ORDERED that this division of the Court retains jurisdiction of this case.


<a href="https://www.ustaxcourt.gov/UstcDockInq/DocumentViewer.aspx?IndexID=6396789" target="_blank">https://www.ustaxcourt.gov/UstcDockInq/DocumentViewer.aspx?IndexID=6396789</a>

Oct. 10th, 2014 – answer due by October 29th, 2014

This case was on the Court's November 17, 2014 trial calendar for Los Angeles, California. On October 6, 2014, respondent moved under Tax Court Rule 37(c) that the undenied allegations in paragraphs 7-15 of its amended answer be deemed admitted. It is therefore ORDERED that petitioner file, on or before October 29, 2014, a reply as required by Rule 37(a) and (b). If petitioner fails to do so, the Court will grant respondent's motion, and the undenied allegations in the amended answer will be deemed admitted.

<a href="https://www.ustaxcourt.gov/UstcDockInq/DocumentViewer.aspx?IndexID=6396844" target="_blank">https://www.ustaxcourt.gov/UstcDockInq/DocumentViewer.aspx?IndexID=6396844</a>

October 14th, 2014 – status report due March 6th, 2015

This case was on the Court's November 17, 2014 trial calendar for Los Angeles, California. Although a very large deficiency is at stake, it raises mostly valuation questions. The parties recently reported that they are cooperating in informal discovery and trying to settle as many issues as possible at IRS Appeals. They reasonably ask to report again in the spring, and it is ORDERED that on or before March 6, 2015 the parties shall file a status report describing their progress in settling the case or narrowing the issues to be tried.


Love you Michael!