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Michael Jackson Estate

Targeted by IRS

Shocking Tax-Cheating Allegations

2/8/2014 9:08 AM PST BY TMZ STAFF
breaking news

0207-michael-jackson-irs

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 who says they stand by their initial statements on the matter ... telling us, "The Estate of Michael Jackson disputes the IRS position in its entirety."

The rep adds, "The Estate used independent, nationally-recognized and highly-qualified expert appraisers in determining the value of the Estate’s assets. By contrast, the IRS consultant’s values are not based on standard appraisal methodology, but rather are speculative and erroneous assumptions unsupported by the facts or law. The Estate has paid over $100 Million dollars in taxes and is in full compliance with the tax laws."

297 COMMENTS

No Avatar
151.

Double Bubble    

The IRS are s***bags.. Doubling the tax penalty is robbery and it's sickening that they can do that to the rich and the poor..

202 days ago
152.

Fred Thomas    

Figures, his parents has emptyed the estate.

202 days ago
153.

Daniel    

Maybe the fed can stop bleeding money and the IRS can **** off.

202 days ago
154.

Bob    

wacko jacko is such a loser I hope Nobama's cronies take the estate for everything

202 days ago
155.

Dave Van R    

typical black I hope they take everthing

202 days ago
156.

Bill Harrison    

Jackson is part of the 1% so they guys hope the IRS get all his money because you can't sing.

202 days ago
157.

International Pedophile Awareness Day June 25    

✫✫✫✫ iPad Prayer✫✫✫✫


-Oh Heavenly Father,


As We Gather On This Happy & Joyous
Sunday We Thank Thee, For Removing A
Sick Pedophile From This Earth


We Thank Thee, Oh Lord That The Children Of
The World Are Now Safe From The
Evil Pedophile Known As Michael Jackson


We Thank Thee, Oh Lord For Delivering
This Tortured Soul Unto The Gates Of
Hell, That He May Dwell Therein For All
Eternity, For All The Innocent Souls Of
The Children That Were Abused By This
Evil Serpent


We Pray & Ask Thee, Oh Heavenly Father
That On This Day, The Children That Were
Victims Of Abuse, Be Blessed, That They
Can Forgive & Forget The Horrible Acts
Committed Unto Them By Michael Jackson
Epically Wade Robson,Who Suffered
Greatly At The Hands Of The Evil Demon


We Ask Thee, Oh Heavenly Father, That The
Sinful Evil, Greedy Jacksons, That Care More
About Money & How To Acquire More And
Can Ever Have Enough Of It,Who Have Never
Shed A Tear Over All The Molesting That Their
Son,Michael Jackson Committed Against Innocent
Children Soon Join Him In Eternal Damnation
In The Hottest Fires In Hell For All Eternity


We Thank Thee, Oh Heavenly Father
For Releasing Our Brave Doctor From His Jail Cell,
Doctor Conrad Murray Who Suffered Horribly Because
Of A Drug Addicted Pedophile,Who Wouldn't Take
"No" For An Answer,A Drug Addicted Pedophile That Ruined So Many Lives.
We Ask Thee, Oh Heavenly Father,That You
Bless This Great Man & Guide Him In His Quest To
Regain His Medical License That Was Wrongly
Denied Him,To Guide His Hand As He Writes His Book That Will Expose The Evil Michael
Jackson For The True Monster That He Was.

We Ask Thee, Oh Heavenly Father, That The
Rabid Fans, Repent For Their Sins Of Supporting
Such A Evil Pedophile, That Their Eyes Be Opened
To The Truth & Receive knowledge Of The Good
And Repent The Bad


"Father, Forgive Them, For They Know Not What They Do"


And We Say This In The Name Of The Son, The Father & The Holy Ghost


~ Amen~

202 days ago
158.

jacqueline    

They do a good job of keeping upbwith your finances in this country, looks like if you have anything they gonna come after ya and want be happy til they break you.what happen to america the beautiful.

202 days ago
159.

pete    

Hopefully the money grubbing thieves at the IRS will choke on whatever they decide to extract from a dead man. After all, dead men don't vote.

202 days ago
160.

B4-I-FU-RU-18?    

Do they go after. The CEO's. And Wall Street big wigs . Who hide their furtunes overseas? What's that , ? I can't hear ya.

202 days ago
161.

Ronster    

If he really owes that much, maybe that why he faked his death! I would!!

202 days ago
162.

Ronster    

Wow does he really oowe that much? Maybe that why he faked his death!

202 days ago
163.

Snow    

I wasn't very fond of Michael Jackson except for his talent, and I think the Jacksons are a bunch of greedy num nuts, but I think estate taxes are excessive. Why should the government get hundreds of millions in taxes from peoples own sweat and hard work. If anything, estate taxes should be given to a noble cause such as feeding the hungry in america. I mean, does all this tax money ever go to reduce our own taxes? Nope.

202 days ago
164.

Informer    

And we all know we can trust the IRS right ? screw the IRS i will Trust the People over them any day !

202 days ago
165.

me    

Looks like the estate attorneys malpracticed to the "tune" of $200 million (increased IRS penalty). The kids' lawyers owe the kids a fiduciary duty to recoup from the estate lawyers any of the penalty monies paid to the IRS; otherwise they will be in breach of their duties.

202 days ago
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