Prince’s Estate has been targeted by the IRS for devaluing the Estate, which left them with a $32 million tax bill.
A few things are inevitable in life and one of those happens to be paying taxes. We’ve seen how many times people think they can outsmart the IRS and end up getting caught in legal trouble years later, after they think they’ve pulled a finesse. If it’s a group or entity you shouldn’t play with, it’s the Internal Revenue Service.
Uncle Sam claims the estate is worth double what the money managers claim. The estate set the value at just over $80 million, but the IRS says it’s worth more than $160 mil.
Obviously, the taxman wants his cut, and that’s why the U.S. Tax Court is now in the picture. The IRS claims the estate shorted the taxes due by $32.4 mil … that’s double what the estate planned to pay.
In addition to paying double the planned tax amount, they are also being hit with a $6.4 million dollar penalty. More than likely the estate will pay and put this behind them. This would be the better decision as various sources claim the estate could easily be worth $300 million.