The IRS Claims That Beyoncé Owes $2.7 Million In Back Taxes, But She Says Otherwise

I think Beyoncé is in her ordinary people era by reminding us she does the same things we do. Or, in this case, things we sometimes don’t do since our favorite alien superstar is currently having issues with the IRS. The IRS claims that Beyoncé owes $2.7 million in back taxes and penalties, but instead of digging into her wig budget and paying them to go away, she has countered by filing a petition in U.S. Tax Court. And like Shakira with the Spanish Tax Man before her, Beyoncé claims that she doesn’t owe Uncle Sam another dime.

Forbes reports Beyoncé will not be letting taxes come in between her and her skyscrapers of cash because those large hair-blowing fans aren’t going to buy themselves. Plus, with the upcoming tour right around the corner, the last thing Queen Bey wants to do is share her honey with the IRS. The Tax Man claims that she owes around $2.2 million in additional taxes from 2018 and 2019. They’re also hitting her with penalties and interest. But Bey is hitting back:

The April 17, 2023, petition asks the court to reconsider additional tax and penalties assessed by the IRS in a January 18, 2023, Notice of Deficiency.

The Notice of Deficiency alleges that $805,850.00 in additional tax, together with $161,170 in penalty, is owed for 2018, and $1,442,747.00 in additional tax, together with $288,549.40 in penalty is owed for 2019. There is also interest due on those amounts.

Knowles-Carter disputes the deficiency, claiming, among other things, that the IRS erred in disallowing millions of dollars’ worth of deductions, including $868,766 attributable to a charitable contribution carryover reported in 2018.

Also at issue? Those penalties. The IRS assessed section 6662(a) penalties—accuracy-related penalties. By statute, those penalties are 20% of the amount of the underpayment of tax. However, Knowles-Carter argues in her petition that if any tax is due, the penalties should not apply because she “has acted reasonably and in good faith.”

Jay-Z is not on the hook since he and Beyoncé file separately:

Knowles-Carter filed the Tax Court petition as the sole taxpayer. Her husband, Sean Carter—also known as Jay-Z—was not included in the filing.

It’s not unusual for high-earning married taxpayers to file their taxes separately. California, where the Carters live according to Knowles-Carter’s tax return, has the added complication of being a community property state. When filing a separate return in the Golden State, each spouse reports one-half of community income plus their individual income.