Michael Jackson Estate Targeted By IRS -- Shocking Tax-Cheating Allegations

SEHF · February 2014

2/8/2014 9:08 AM PST BY TMZ STAFF [size=14pt]Breaking News[/size]

The Michael Jackson Estate is in the crosshairs of the IRS for allegedly cheating taxpayers out of a fortune ... and now the taxman wants the Estate to pay the piper -- to the tune of more than $700 million. The allegations are stunning. According to legal docs -- obtained by the L.A. Times -- when Michael died the executors told the IRS his net worth was around $7 million. The IRS now says MJ's net worth was actually $1.125 BILLION! And in a HIGHLY unusual move, the IRS claimed executors so grossly misled the agency, it doubled the tax penalty -- from 20 - 40%. So the IRS claims the Estate didn't pay $505 million worth of taxes, and when you add the 40% it comes to more than $702 Million. As for what the agency says was under-reported: -- 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. It's pretty clear the Estate will fight this like crazy, but worst case scenario the taxes could wipe out what the Estate has made since MJ's death ... which could be devastating for Michael's kids. We contacted a rep for the Estate. So far no word back.

Souza · February 2014

HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA

curls · February 2014

Regurgitating old news TMZ - can't your 'sources' come up with something new?

blankie · February 2014

Uhhh????? ;D But Michael was not on the streets , without even a dollar to make a gift to his children ? ? :moonwalk_: :icon_e_wink: :icon_lol: :icon_lol: :icon_lol:

curls · February 2014

For anyone who's interested, here's the LA Times article that TMZ used for their info: />

reveron1958 · February 2014

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 It's a case that, according to the IRS, is very black and white. The Michael Jackson Estate is accused of cheating taxpayers out of millions of dollars by allegedly undervaluing the wealth of the late pop great - and has been hit with a penalty of more than $702 million. New legal documents filed with the U.S. Tax Court in Washington, which were obtained by the L.A. Times, say that after Jackson died in June 2009, the executors of his estate valued the singers net worth at around $7 million. However the IRS are disputing the figure and claim MJ is actually worth $1.125 billion. As a result the agency has told executors that the estate owes $505 million in taxes and an additional $197 million in fines. 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 per cent penalty for underpayment. Most of the dispute is centered around the value of Jackson's image, such as branded T-shirts, merchandise and using his likeness in television commercials. It also looks at the interest of a trust that includes the rights to some of his music and most of the Beatles catalogue, such as songs Yesterday, Sgt Pepper's Lonely Hearts Club Band and Get Back. The estate valued Jackson's likeness at just $2,105. But, stunningly, 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. Tax experts said the Jackson estate would have hired appraisers to determine how much his assets were worth at the time of his death, including his likeness. However, with few estates valuable enough to have to file with the IRS, Jackson's worth is generally hard to measure. '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. This would have had a major effect on endorsement deals and whether companies would have waned to be aligned with the Jackson brand. But since his death, Jackson's music has had a renaissance. The estate had 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, according to Forbes, came from two 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. The tax court documents show that Jackson had three Rolls-Royces and a 2001 Bentley Arnage that the IRS said were worth $250,000, not the $91,600 the estate placed on them. The IRS also found other automobiles, saying that 'tangible personal property including vehicles not reported otherwise' were worth $47.467 million, instead of the $0 the estate reported. As the case unfolds in court, the Jackson estate may pay off its taxes by selling assets or asking the IRS if it could pay over 15 years. Read more: />Follow us: @MailOnline on Twitter | DailyMail on Facebook

sweetsunsetwithMJ · February 2014

on 1391889314:

 [size=18pt]Michael Jackson Estate Targeted by IRS Shocking Tax-Cheating Allegations[/size] 2/8/2014 9:08 AM PST BY TMZ STAFF [size=14pt]Breaking News[/size] The Michael Jackson Estate is in the crosshairs of the IRS for allegedly cheating taxpayers out of a fortune ... and now the taxman wants the Estate to pay the piper -- to the tune of more than $700 million. The allegations are stunning. According to legal docs -- obtained by the L.A. Times -- when Michael died the executors told the IRS his net worth was around $7 million. The IRS now says MJ's net worth was actually $1.125 BILLION! And in a HIGHLY unusual move, the IRS claimed executors so grossly misled the agency, it doubled the tax penalty -- from 20 - 40%. So the IRS claims the Estate didn't pay $505 million worth of taxes, and when you add the 40% it comes to more than $702 Million. As for what the agency says was under-reported: -- 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. It's pretty clear the Estate will fight this like crazy, but worst case scenario the taxes could wipe out what the Estate has made since MJ's death ... which could be devastating for Michael's kids. We contacted a rep for the Estate. So far no word back.

If all this is true and Michael doesn't come back to stop it he will never do it. Is this meant to bring MJ back from "death"?

Souza · February 2014

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 If all this is true and Michael doesn't come back to stop it he will never do it. Is this meant to bring MJ back from "death"?

Stop what?

sweetsunsetwithMJ · February 2014

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on 1392303010:

 If all this is true and Michael doesn't come back to stop it he will never do it. Is this meant to bring MJ back from "death"? 

 Stop what?

Only IMO and if I have understood it well if Michael remains "dead" he would have to pay more than 700 million $ what would be terrible for his heirs...so if he came back he wouldn't have to pay that amount of money. What if the government, FBI,etc.. is trying to bring him back from hiding due to all of them or some of them helped him to fake his death and he was given those four-year time to repair the damages? Prove me wrong. Dead or alive, you always pay taxes. He'll probably settle for 250 million or something and get off cheap. Let's see what happens. He IS the estate, so he is in control his $$$ anyway.

Do · February 2014

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 If all this is true and Michael doesn't come back to stop it he will never do it. Is this meant to bring MJ back from "death"? 

 Stop what? 

 Only IMO and if I have understood it well if Michael remains "dead" he would have to pay more than 700 million $ what would be terrible for his heirs...so if he came back he wouldn't have to pay that amount of money. What if the government, FBI,etc.. is trying to bring him back from hiding due to all of them or some of them helped him to fake his death and he was given those four-year time to repair the damages? Prove me wrong.

Am I wrong in assuming that tax has to be paid anyway, either if he is dead or comes back alive? If he/the estate was worth that much at the time, then I assume they have to pay tax based on that amount. Or am I totally wrong? (I'm not into taxes :smiley-vault-misc-150:) And I still can't see how he will repair the damage done to him, certainly not with the help of the government. Michael was rebelling against the government, why should they help him?

blankie · February 2014

@Do ; And I still can't see how he will repair the damage done to him, certainly not with the help of the government. Michael was rebelling against the government, why should they help him? Might be provocations to get him out of the closet because, from the beginning there are rumors ( :icon_e_wink:) of his death hoax.... :icon_rolleyes: :icon_e_confused: :icon_question:

Do · February 2014

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 @Do ; And I still can't see how he will repair the damage done to him, certainly not with the help of the government. Michael was rebelling against the government, why should they help him? Might be provocations to get him out of the closet because, from the beginning there are rumors ( :icon_e_wink:) of his death hoax.... :icon_rolleyes: :icon_e_confused: :icon_question:re

Blankie, i'm not sure what you mean...Provocations by whom? The IRS? I don't think they believe in a death hoax. They don't care about that, all they care about is getting the money. What I believe right now is that Michael was pretty alone in his fight against who knows who/what. Because, basiclally, all the powerful people he once trusted, ended up taking advantage of him or betrayed him.

sweetsunsetwithMJ · February 2014

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on 1392316652:

 

on 1392306873:

 

on 1392303010:

 If all this is true and Michael doesn't come back to stop it he will never do it. Is this meant to bring MJ back from "death"? 

 Stop what? 

 Only IMO and if I have understood it well if Michael remains "dead" he would have to pay more than 700 million $ what would be terrible for his heirs...so if he came back he wouldn't have to pay that amount of money. What if the government, FBI,etc.. is trying to bring him back from hiding due to all of them or some of them helped him to fake his death and he was given those four-year time to repair the damages? Prove me wrong. 

 Am I wrong in assuming that tax has to be paid anyway, either if he is dead or comes back alive? If he/the estate was worth that much at the time, then I assume they have to pay tax based on that amount. Or am I totally wrong? (I'm not into taxes :smiley-vault-misc-150:) And I still can't see how he will repair the damage done to him, certainly not with the help of the government. Michael was rebelling against the government, why should they help him?

Well it's a FEDERAL tax, it's called an estate tax that deal with the value/inheritance of a dead person. If MJ was alive, he'd not have to pay estate tax. So the government could be flushing him out of hiding with the threat to take $702 million, IMHO. When I talk about government I ONLY talk about Obama that we all once agreed he was for sure helping him due to MJ began the hoax shortly after rising to the presidency.

applehead250609 · February 2014

on 1391889314:

 [size=18pt]Michael Jackson Estate Targeted by IRS Shocking Tax-Cheating Allegations[/size] 2/8/2014 9:08 AM PST BY TMZ STAFF [size=14pt]Breaking News[/size] The Michael Jackson Estate is in the crosshairs of the IRS for allegedly cheating taxpayers out of a fortune ... and now the taxman wants the Estate to pay the piper -- to the tune of more than $700 million. The allegations are stunning. According to legal docs -- obtained by the L.A. Times -- when Michael died the executors told the IRS his net worth was around $7 million. The IRS now says MJ's net worth was actually $1.125 BILLION! And in a HIGHLY unusual move, the IRS claimed executors so grossly misled the agency, it doubled the tax penalty -- from 20 - 40%. So the IRS claims the Estate didn't pay $505 million worth of taxes, and when you add the 40% it comes to more than $702 Million. As for what the agency says was under-reported: -- 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 [size=36pt]MJ and the Beatles at ZERO[/size]! 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. It's pretty clear the Estate will fight this like crazy, but worst case scenario the taxes could wipe out what the Estate has made since MJ's death ... which could be devastating for Michael's kids. We contacted a rep for the Estate. So far no word back.

 THE TRUTH= Read betewn the LIEn$.......sorry betewn Branca's Smile$ :icon_e_biggrin: .

curls · February 2014

I think to be realistic about all this, the complexities of Michael Jackson's tax issues, dead or alive, are not going to be covered or understood by the likes of TMZ, fans, hoaxers or Joe Public. If they are disputed by professionals, each coming from their own angle of course, and why not, what chance have we got?! That's why they are professionals and we are not! And really, bottom line for me is, this is yet another aspect of MJ's life and death that I don't feel is any of my business. So while I admit it was nice to hear from TMZ, I'm not about to waste any more brain cells over it. And I'm certainly not about to start concocting more theories, like the government, via the IRS, is trying to flush MJ out of hiding, (sorry sweet!) as a way of explaining things I am simply not qualified to understand.

Do · February 2014

on 1392335302:

 Well it's a FEDERAL tax, it's called an estate tax that deal with the value/inheritance of a dead person. If MJ was alive, he'd not have to pay estate tax. So the government could be flushing him out of hiding with the threat to take $702 million, IMHO.

Well, just like Curls, I'm not into taxes, nor do I feel like this has to do with the hoax, so I'm not going into that, just wondering why TMZ comes up with old news? /> The article states that first the court has to rule in favor of the IRS before they can go further. When will this be happening or is this in court already?

When I talk about government I ONLY talk about Obama that we all once agreed he was for sure helping him due to MJ began the hoax shortly after rising to the presidency.

I don't remember in what way Obama helped Michael with his hoax? Do you have examples to refresh my memory? I only remember Obama giving a little tribute to Michael after he died, by saying he has his music on his I-pod, and that we lost an incredible musician, that's about it. And 'the four years to get it right' speech maybe could refer to Obama, but I'm certainly not sure this was done in a good sense.

applehead250609 · February 2014

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on 1392335302:

 Well it's a FEDERAL tax, it's called an estate tax that deal with the value/inheritance of a dead person. If MJ was alive, he'd not have to pay estate tax. So the government could be flushing him out of hiding with the threat to take $702 million, IMHO. 

 Well, just like Curls, I'm not into taxes, nor do I feel like this has to do with the hoax, so I'm not going into that, just wondering why TMZ comes up with old news? http://www.forbes.com/sites/zackomalleygreenburg/2013/08/23/why-the-702-million-irs-tax-claim-on-michael-jacksons-estate-wont-stand-up/ The article states that first the court has to rule in favor of the IRS before they can go further. When will this be happening or is this in court already? 

When I talk about government I ONLY talk about Obama that we all once agreed he was for sure helping him due to MJ began the hoax shortly after rising to the presidency.

 I don't remember in what way Obama helped Michael with his hoax? Do you have examples to refresh my memory? I only remember Obama giving a little tribute to Michael after he died, by saying he has his music on his I-pod, and that we lost an incredible musician, that's about it. And 'the four years to get it right' speech maybe could refer to Obama, but I'm certainly not sure this was done in a good sense.

Do I'm with you on this. Do you really want to know why T.M.Z. (Thirty Mile Zone ) has brought this allegedly OLD news back?? Well,it is..... becasue it is not at all ,a OLD news,in fact it is a very Actually one :icon_mad: .What people need to understand it is that the rabbit-hole it goes way deeper that people think it's very complicated......even for me .....after more than 4 years of investigations. First of all, we need to rethink what was "told to us" about WHO Michael really is and WHAT he really owns......for real......becasue this CONfusion is everywere you look !!!!!!! During M.J. ( Michael Jackson ) history ,at one point it was told that he was in fact poor and had nothing.....just the Beatles catalog.....and the rights to HIS own music lol .Just when you think he is rich enough to live another 100 hundred years,the newspapers and media comes back and tell us,that he is in fact very rich lol :icon_eek: .This kind of CONfusion applies even to another things we were told about Michael.So let's see some example:he was poor/he was not poor,he was black/he was white (or became white) ,he was short/he was tall(more taller than people think lol),he was ill/he was in fact not ill at all( ex: after 2009),he was childish/he was very mature (even very clever businessman) etc....... .In another word,all this were simple DETAILS, (that can be noticed if you really pay attention lol ) which were applicable in a certain period of history, according to the needs of certain persons/ groups of persons/corporations .I know this sound very strange,and in fact it really is lol.....but it was done DELIBERATELY to create CONfusion,about the person Michael Jackson and about his life.To create CONfusion about what all this begun,about who he reallly is,about his supposed business deals,about what he really OWNS. In conclusion (and this is my oppinion only ) Michael Jackson does not own a damn thing,and as a person he is worthLESS!!!! But if we talk about a CORPoration like for example S.O.N.Y. ,that's something else .Branca always had double role in this,he was working for SONY/M.J. Now the question is who Branca really is and for who is he working really,because as we know SONY is a CORPoration and it "front" of a CORPoration can be mANYone lol.For the people who are doing this,......this is a GAME,which in fact, for us is not......because people are dying every day because of them.This people/group of people does not care about us and never will.....because of the M.O.N.E.Y. :woohoo2:!!!!

diggyon · February 2014

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on 1392380259:

 

on 1392335302:

 Well it's a FEDERAL tax, it's called an estate tax that deal with the value/inheritance of a dead person. If MJ was alive, he'd not have to pay estate tax. So the government could be flushing him out of hiding with the threat to take $702 million, IMHO. 

 Well, just like Curls, I'm not into taxes, nor do I feel like this has to do with the hoax, so I'm not going into that, just wondering why TMZ comes up with old news? http://www.forbes.com/sites/zackomalleygreenburg/2013/08/23/why-the-702-million-irs-tax-claim-on-michael-jacksons-estate-wont-stand-up/ The article states that first the court has to rule in favor of the IRS before they can go further. When will this be happening or is this in court already? 

When I talk about government I ONLY talk about Obama that we all once agreed he was for sure helping him due to MJ began the hoax shortly after rising to the presidency.

 I don't remember in what way Obama helped Michael with his hoax? Do you have examples to refresh my memory? I only remember Obama giving a little tribute to Michael after he died, by saying he has his music on his I-pod, and that we lost an incredible musician, that's about it. And 'the four years to get it right' speech maybe could refer to Obama, but I'm certainly not sure this was done in a good sense. 

 Do I'm with you on this. Do you really want to know why T.M.Z. (Thirty Mile Zone ) has brought this allegedly OLD news back?? Well,it is..... becasue it is not at all ,a OLD news,in fact it is a very Actually one :icon_mad: .What people need to understand it is that the rabbit-hole it goes way deeper that people think it's very complicated......even for me .....after more than 4 years of investigations. First of all, we need to rethink what was "told to us" about WHO Michael really is and WHAT he really owns......for real......becasue this CONfusion is everywere you look !!!!!!! During M.J. ( Michael Jackson ) history ,at one point it was told that he was in fact poor and had nothing.....just the Beatles catalog.....and the rights to HIS own music lol .Just when you think he is rich enough to live another 100 hundred years,the newspapers and media comes back and tell us,that he is in fact very rich lol :icon_eek: .This kind of CONfusion applies even to another things we were told about Michael.So let's see some example:he was poor/he was not poor,he was black/he was white (or became white) ,he was short/he was tall(more taller than people think lol),he was ill/he was in fact not ill at all( ex: after 2009),he was childish/he was very mature (even very clever businessman) etc....... .In another word,all this were simple DETAILS, (that can be noticed if you really pay attention lol ) which were applicable in a certain period of history, according to the needs of certain persons/ groups of persons/corporations .I know this sound very strange,and in fact it really is lol.....but it was done DELIBERATELY to create CONfusion,about the person Michael Jackson and about his life.To create CONfusion about what all this begun,about who he reallly is,about his supposed business deals,about what he really OWNS. In conclusion (and this is my oppinion only ) Michael Jackson does not own a damn thing,and as a person he is worthLESS!!!! But if we talk about a CORPoration like for example S.O.N.Y. ,that's something else .Branca always had double role in this,he was working for SONY/M.J. Now the question is who Branca really is and for who is he working really,because as we know SONY is a CORPoration and it "front" of a CORPoration can be mANYone lol.For the people who are doing this,......this is a GAME,which in fact, for us is not......because people are dying every day because of them.This people/group of people does not care about us and never will.....because of the M.O.N.E.Y. :woohoo2:!!!!

applehead I don't get your point! For me this is very simple because this is what I understood so far: if MJ doesn't come back he will have to pay all that money. But but if he comes back he won't pay those taxes. Now what did you say about MJ being wothless???

Michael Jackson Estate Targeted By IRS -- Shocking Tax-Cheating Allegations

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