The financial situation surrounding Michael Jackson’s estate continues to be tumultuous, with his children Prince, Paris, and Bigi Jackson, along with his mother Katherine, being cut off from receiving any money from his trust. This decision comes as a result of an ongoing dispute between the estate and the IRS, which has been looming for several years.
Court documents obtained by People reveal that the estate was issued a note of deficiency by the IRS, claiming that the estate undervalued its assets and owed a staggering $700 million in taxes and penalties. After a tax audit, the estate challenged these findings in tax court and ultimately won in 2021.
However, the estate has since filed a motion for the value of Michael Jackson’s music catalog, known as Mijac, to be reconsidered. This request is still pending, leaving the estate’s total value up in the air for tax purposes. Until the value of the estate is determined, no final ruling can be made by the estate and the IRS.
Amidst this financial battle, the estate’s executors have been faced with the challenge of determining a safe amount to distribute to Michael’s family trust. Despite requests for a portion of the estate to be distributed in the interim, executors have expressed uncertainty about the appropriate amount to allocate at this time.
As an alternative, executors have suggested that the estate provide for Michael’s children and mother through the family allowance, as outlined in legal documents. This proposal comes in the midst of the ongoing financial complexities surrounding the estate and the unresolved tax dispute.
Adding to the complexity of the situation, Sony Music Group recently purchased half of Michael Jackson’s music catalog for a substantial sum of at least $600 million. Meanwhile, Bigi Jackson has found himself embroiled in a dispute with his grandmother Katherine over the use of estate funds to cover legal fees related to an undisclosed court case.
The financial saga surrounding Michael Jackson’s estate remains unresolved as the estate and the IRS continue to grapple with the valuation of assets and tax liabilities. The uncertainty surrounding the distribution of funds and the future financial well-being of Michael’s children adds another layer of complexity to an already intricate situation. Only time will tell how this financial dispute will ultimately be resolved and what impact it will have on the legacy of the King of Pop.
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