Michael Jackson estate fights US IRS in Tax Court
WASHINGTON (REUTERS) - The estate of pop music legend Michael Jackson is fighting the Internal Revenue Service (IRS) 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 United States (US) 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 per cent of the difference between the taxes paid and those allegedly owed for some of the items.