Michael Jackson Estate Wins IRS Battle - Noise11.com
Michael Jackson, Noise11, Photo, music news

Michael Jackson

Michael Jackson Estate Wins IRS Battle

by Music-News.com on May 5, 2021

in News

Michael Jackson’s children have been handed a “huge, unambiguous victory” in their late father’s estate’s legal battle with the U.S. IRS (Internal Revenue Service).

The lawsuit stemmed from an argument about how much Jackson’s name and likeness were worth at the time of his death at the age of 50 in 2009 – with IRS officials estimating $161 million (£116 million) and executors of Jackson’s estate arguing it was more like $2,105 (£1,517), due to the damage caused to his reputation by child molestation accusations.

The IRS had claimed Jackson’s estate had underpaid its tax bill by nearly $500 million (£360 million), and could potentially owe an additional $200 million (£144 million) in penalties, due to the estimation of the late star’s worth.

However, on Monday, Judge Mark Holmes of United States Tax Court ruled that Jackson’s name and likeness were worth $4.2 million (£3 million), stating: “We have to look for the value of each of Jackson’s assets. The value we put on them as of the day he died is, we acknowledge, much less than their value much later under the estate’s management.

“We make no particular judgment about what Jackson did or is alleged to have done, but we must decide how what he did and is alleged to have done affected the value of what he left behind.”

Responding to Holmes’ ruling, John Branca and John McClain, co-executors of the Jackson estate, called it “a huge, unambiguous victory for Michael Jackson’s children”.

“For nearly 12 years, Michael’s estate has maintained that the government’s valuation of Michael’s assets on the day he passed away was outrageous and unfair, one that would have saddled his heirs with an oppressive tax liability of more than $700 million,” they said. “While we disagree with some portions of the decision, we believe it clearly exposes how unreasonable the IRS valuation was and provides a path forward to finally resolve this case in a fair and just manner.”

The estate’s tax bill will now be based on the $4.2 million figure decided on by Judge Holmes.

Judge Holmes also decided the value of Jackson’s share of Sony/ATV Music Publishing, the company that controlled millions of song copyrights — including the majority of the Beatles’ catalogue — and Mijac Music, another catalogue he owned.

Executors of the estate had put their value at $5.3 million (£3.8 million). Judge Holmes decided their total value was $111.5 million (£80 million). In 2016, Sony/ATV — now known as Sony Music Publishing — agreed to pay the Jackson estate $750 million to buy out its share of that catalogue.

music-news.com

Noise11.com

Follow Noise11 on Social Media

NEW: Noise11 on YouTube SUBSCRIBE

Noise11 on Instagram

You’ll discover music news first following Noise11 on Twitter

Comment on the news of the day, join Noise11 on Facebook

Comments

comments

Related Posts

Island Records and UMe announce the 40th-anniversary vinyl release of “Gloria,” a limited edition 12” yellow vinyl EP to celebrate RSD Black Friday on Friday, November 26, 2021. Originally released as a single in October 1981, “Gloria” is the second single to be taken from U2’s second studio album October and has been a staple in U2’s live set to this day. This very special anniversary release includes the studio version of “Gloria” plus three live versions from three different decades.
U2 To Release ‘Gloria’ Rarities On 40th Anniversary Vinyl

U2 will release a yellow-vinyl 4-track EP to mark the 40th anniversary of their ‘Gloria’ single including some rare versions of the song.

2 hours ago
David-Bowie-A-Reality-Tour-Concert.-Photo-by-Ros-OGorman
David Bowie Complete Catalogue Moves To Warner Music

The Warner Music Group and the Estate of David Bowie have signed a global deal to put the entire Bowie catalogue in the hands of the Warner group.

2 hours ago
Rod Stewart - Photo By Ros O'Gorman
Rod Stewart Debuts New Song ‘One More Time’ Ahead of ‘The Tears Of Hercules’ Album

Rod Stewart will release his 31st album ‘The Tears of Hercules’ in November. His new song ‘One More Time’ is a little bit country and a little bit rock and roll.

5 hours ago
Elton John and his Band perform in Melbourne at Rod Laver Arena on Friday 11 December 2015. Photo by Ros O'Gorman
Elton John Postpones Show To 2023

Elton John has postponed his upcoming tour in the U.K. and Europe so he can undergo an operation on his hip.

10 hours ago
James Hetfield of Metallica photo by Ros O'Gorman
Metallica To Headline First Download Festival In Germany

Metallica are set to headline the inaugural Download Festival Germany.

2 days ago
Charlie Watts of the Rolling Stones photo by Ros O'Gorman
The Rolling Stones Could Not Attend Charlie Watts Funeral

The Rolling Stones, Mick Jagger, Keith Richards and Ron Wood, were unable to attend the funeral of their drummer Charlie Watts due to Covid restrictions.

2 days ago
Paul Kelly AWITG on Friday 17 November 2017. Photo by Ros O'Gorman
Paul Kelly Debuts Song About Eddie Betts ‘Every Step Of The Way’

Paul Kelly’s new song ‘Every Step Of The Way’ is about football player Eddie Betts.

2 days ago