Prince’s estate owes another $32.4 million in federal taxes to the IRS The death of the star in 2016 culminated in a complex court case
After the U.S. calculations, the dispute over the money Prince left behind after his death without a will is heating up again. The Internal Revenue Service showed that his estate’s executors undervalued the estate of the rock star by 50 percent, or around $80 million. Gerry Marsden: 10 of his best songsRead more The Internal Revenue Service has estimated that the estate of Prince is worth $163.2 million, overshadowing the estimate of $82.3 million submitted by the estate’s executor, Comerica Bank & Trust. The records show that the IRS believes that the Prince’s estate owes another $32.4 million in federal taxes, which, the Star Tribune estimated, is about twice the tax bill based on the value of Comerica. “The IRS also ordered a “accuracy-related penalty” of $6.4 million on Prince’s assets, alleging a “major” asset undervaluation, records show. Prince’s death on April 21, 2016 from an opioid overdose created one of the largest and most complex probate court cases in the history of Minnesota. His net worth figures differ widely, ranging from $100 million to $300 million. The six sibling heirs are increasingly unhappy with Prince’s estate proceedings dragging on, particularly when the estate has shelled out tens of millions of dollars to lawyers and advisors. Comerica and his lawyers at Fredrikson & Byron in Minneapolis maintain that their estate valuations are strong.
This summer, Comerica sued the IRS in the U.S. Tax Court in Washington, arguing the calculations of the department are fraught with mistakes. “What we have here is a classic battle of the experts – the estate’s experts and the IRS’s experts,”What we have here is a classic battle of the experts – the estate experts and the IRS experts. Comerica, a financial services giant headquartered in Dallas, has asked the Tax Court to hold a St. Paul trial.
A trial could significantly drag the Prince’s estate settlement out and produce more legal fees at the expense of the heirs of the Prince, Patrick said.