IRS wants $700 million from Michael Jackson estate

Says his name and likeness were undervalued at death; "What about Marilyn?" his attorneys ask

Feb 6, 2017 @ 10:56 am

By InvestmentNews

How much are the rights to the late Michael Jackson's name and likeness worth?

That's the central question in a case in U.S. Tax Court, according to The Wall Street Journal, which reported that the artist's executors are squaring off against the Internal Revenue Service over their value. The estate may have to pay more than $700 million depending on the outcome of the case, the newspaper reported, including more than $500 million in taxes and $200 million in penalties.

At the time of Mr. Jackson's death in 2009, the estate valued his name and likeness at $2,105, largely because his reputation was then tainted by his unusual public behavior and allegations of child abuse.

The IRS is arguing that the image asset should have been valued at $161 million; that would be lower than the $434 million value it placed on Mr. Jackson's name and reputation in 2013. At that time it had valued the total estate at over $1.3 billion.

Attorneys for the Jackson estate argue that the artist earned only $50 million from his name and likeness while he was alive, and that similar assets belonging to the estates of Elvis Presley, Marilyn Monroe and Muhammad Ali were never valued that high.

The government is “trying to take what Michael's estate created for his children after death and extract an unreasonable and excessive tax,” one of his attorneys said.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

INTV

Advisers beware: tax law has unintended consequences

Commission accounts could be preferable for some clients, and advisers could be incentivized to move from employee broker-dealers to independent channels.

Recommended Video

Path to growth

Latest news & opinion

El-Erian warns advisers on ETF liquidity

If investors decide to exit exchange-traded funds en masse, things could get nasty, economist says.

Fidelity charging new fee on Vanguard assets held in 401(k) plans

The 0.05% fee is ostensibly a response to Vanguard's distribution model, but may also make the company's funds less attractive due to higher cost.

UBS adviser count continues to decline

Firm to merge U.S., global wealth management units on Feb. 1

TD Ameritrade launches all-night trading for ETFs

Twelve funds now can be traded after-hours, but the list will grow, company says.

Cutting through the red tape of adviser regulation is tricky

Don't expect a simple rollback of rules under the Trump administration in 2018 — instead, regulators are on pace to bolster financial adviser oversight.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print