A Bit of News from the USA.
Executors undervalued Prince’s estate by $80m, IRS says
IRS believes Prince’s estate owes another $32.4m in federal tax
Star’s death in 2016 created complicated court proceeding
Associated Press in Minneapolis
Mon 4 Jan 2021 09.14 EST
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The controversy over the money left behind by Prince when he died without a will is heating up again after Internal Revenue Service calculations showed that executors of the rock star’s estate undervalued it by 50%, or about $80m.
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The IRS determined that Prince’s estate is worth $163.2m, overshadowing the $82.3m valuation submitted by Comerica Bank & Trust, the estate’s administrator. The discrepancy primarily involves Prince’s music publishing and recording interests, according to court documents.
Documents show the IRS believes that Prince’s estate owes another $32.4m in federal taxes, roughly doubling the tax bill based on Comerica’s valuation, the Star Tribune reported. The IRS also has ordered a $6.4m “accuracy-related penalty” on Prince’s estate, citing a “substantial” undervaluation of assets, documents show.
Prince’s death of a fentanyl overdose on 21 April 2016 created one of the largest and most complicated probate court proceedings in Minnesota history. Estimates of his net worth have varied widely, from $100m to $300m.
With Prince’s probate case dragging on, his six sibling heirs have grown increasingly unhappy, particularly as the estate has doled out tens of millions of dollars to lawyers and consultants.