Michael Jackson estate embroiled in tax fight with IRS

[warrior1]

http://www.latimes.com/local/la-me-jackson-taxes-20140208,0,3089248.story#ixzz2slQyNfej


Executors say Michael Jackson was worth $7 million when he died. The IRS says it's more like $1.125 billion and wants $702 million in taxes and penalties.

[rocktivity]

1. "The IRS placed it at $1.125 billion, a difference so vast it looks like a typo."

Jackson's return was so inaccurate, the IRS said, that it qualified for a gross valuation misstatement penalty, which would allow the government to double the usual 20% penalty for underpayment.

"I've never even heard of the gross valuation misstatement penalty being asserted," said Andrew Katzenstein, an estate tax expert at the law firm Proskauer Rose in Los Angeles.

Well, there's a first time for everything, LOL!

The estate valued Jackson's likeness at just $2,105. The IRS put it at $434.264 million...

The estate put the value of the pop star's interest in the trust that owns the Beatles' and Jackson's songs at zero. The IRS put it at $469 million...

The IRS also said Jackson's interest in another trust was worth $60.6 million, not $2.2 million, as the estate claimed...

Maybe the problem is that the estate is basing their estimates on confederate dollars.

Most estates are much easier to value than Jackson's. You can look up the prices of stocks and bonds. You can check comparable properties for real estate. With a business, you can compare sales with a similar firm. But how do you value Jackson's likeness?

Yes, especially when he had SO MANY likenesses?


The bottom line (if you'll pardon the expression) is that somebody around here needs a refresher course!


rocktivity

[rocktivity]

2. Well, this explains an article I came across back in October

Last edited Sun Feb 9, 2014, 05:23 PM - Edit history (1)

From the OP article:

The Jackson estate probably would argue 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. Companies were not exactly begging Jackson to endorse their products or trying to make deals with him.

(But) since he died, Jackson's recordings have...earned $475 million, according to a court filing in July 2012. Forbes magazine reported in October 2013 that Jackson was the highest-paid celebrity that year — dead or alive — earning $160 million...Much of the money...came from...Cirque du Soleil shows based on Jackson's music, one at Mandalay Bay Hotel and Casino in Las Vegas and another that tours the world...

From Belfast Telegraph UK:

Quincy Jones sues Jackson's estate: Music producer Quincy Jones is suing Michael Jackson's estate, claiming he is owed millions in royalties and production fees on some of the superstar's greatest hits.

Jones' lawsuit seeks at least 10 million dollars (£6.2m) from the singer's estate and Sony Music Entertainment, claiming they improperly re-edited songs to deprive him of royalties and production fees. The music has been used in the film This Is It and a pair of Cirque du Soleil shows based on the King of Pop's songs...

(T)he lawsuit states...(that) Jackson's hits Billie Jean, Thriller and Don't Stop 'Til You Get Enough are among the songs Jones claims were re-edited to deprive him of royalties and his producer's fee...(T)he producer's contracts called for him to have the first opportunity to re-edit or alter the songs, in part to protect his reputation.

Et tu, Quincy?


rocktivity