What’s Michael Jackson’s image worth? A $434 million question for the IRS
NBC NEWS - There's a big disparity over Jackson's image, as well as his recording legacy...
What’s a face worth? Or a look? Or a dance move?
When it comes to Michael Jackson, there’s a huge difference between how the government values his image and what his family thinks the likeness of the “Man in the Mirror” is worth.
About $434 million to be exact.
There’s a big disparity over Jackson’s image, as well as his recording legacy. The estate said the taxable value of the singer’s image and likeness was $2,105 — while the IRS says it’s more like $434 million. The estate’s stake in Jackson’s recording assets was valued at $469 million by the IRS, but was not even included in the 2009 estate filing.
The Internal Revenue Service says that the Michael Jackson estate owes $702 million in federal taxes, plus penalties, according to charges the agency brought in U.S. Tax Court.
IRS representatives say the estate has undervalued the late “King of Pop’s” assets by hundreds of millions of dollars, amounts they say were not disclosed in a court challenge the estate filed in July, as a response to a bill from the IRS.
Essentially, the estate is saying Jackson’s legacy is worth considerably less than the tax agency believes it is.
“Every estate wants to lowball the value of assets,” said Alex Raskolnikov, a professor at Columbia Law School, who specializes in tax law. “The amount of tax an estate has to pay is based on the value of the assets.”
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