Both The Los Angeles Times and TMZ say that the last government agency you should fuck with, the IRS, hit the Michael Jackson Estate with a bill for hundreds of millions of dollars. The IRS claims that Michael Jackson’s Estate lied about his net worth when he died and now they want $702 million in taxes and fines. Run, Jackson Family, ruuuuun, flee to Switzerland while you still can! Blanket and Detective La Toya are too fragile and delicate for prison!
In documents filed with the U.S. Tax Court in Washington, the IRS claims that the executors of Michael Jackson’s estate claimed that he was worth $7 million at the time of his death in 2009. According to the IRS, Michael Jackson was worth just a little bit more than $7 million. The IRS says that he was actually worth $1.125 billion. Wooops, bitch. That’s what the Jacksons get for letting Bubbles do their accounting #nodissrespecttobubbles. The IRS says that the Michael Jackson Estate owes taxpayers $505 million in unpaid taxes and $197 million in fines. To show the Jackson Estate that they aren’t fucking around, the IRS doubled the tax penalty from 20% to 40%. Michael Jackson’s tax return was so inaccurate, which is why they’ve been hit with that gross valuation misstatement penalty. The L.A. Times breaks down what the IRS claim was underreported.
Michael Jackson’s image:
His estate claims it’s valued at only $2,105.
The IRS claims it’s valued at $434.264 million.
Michael Jackson’s interest in the trust that owns the catalog of his own songs and the Beatles’ songs:
His estate claims it’s valued at ZERO dollars and ZERO cents.
The IRS claims it’s valued at $469 million.
During the wrongful death suit, a public accountant testified that Michael Jackson took out a $320 million loan against the music catalog. The IRS also says that another trust his Estate claims is worth $2.2 million is actually worth $60.6 million. MJ’s Estate stated that the Jackson 5 master recordings are valued at $11.2 million, but the IRS thinks they’re valued at $45.5 million.
The L.A. Times says that the Estate’s lawyers will definitely smear Vaseline all over their faces and fight this to the end. They will probably argue that at the time of his death, Michael Jackson hadn’t toured and he hadn’t put out an album and the child molestation scandal ruined his reputation, so his image wasn’t worth nearly $434 million. Most inheritance tax disputes are settled before going to court, but the L.A Times thinks that the Jackson Estate is ready to go to trial, because they’ve hired the top tax litigators in L.A.
Yes, $702 million is a shit load of money (“Speak for yourself, poor!” – Oprah), but the Jacksons can easily pay it off by doing the following:
– Sell bottles of Detective La Toya’s air kisses at $100 each.
Estimated profit: $219 million
– Chop off Blanket Jackson’s luxurious mane (I know, I should be arrested for even typing that) and sell it to weave companies.
Estimated profit: $310 million
– Sell Jermaine Jackson’s hairline to science.
Estimated profit: $5
– Make Rebbie Jackson perform the greatest Jackson song of all-time “Centipede“ at birthday parties, weddings, bar mitzvahs, etc..
Estimated Profit: $456 million
– Put up a Kickstarter to send Joe Jackson on a one-way trip to space.
Estimated profit (after the cost of the space trip): $999 million
Estimated total profit: $1.989 billion!
See, and they’ll still have a bunch of money leftover after they pay the taxes on their profits. And yes, after looking at my gross valuation of estimated profits, I’m beginning to think that I was the Jackson Estate accountant.