Michael Jackson Estate May Avoid Penalties in IRS Dispute
- IRS claims estate underestimated value of Jackson’s image
- Judge denies IRS bid to bring additional evidence after trial
Michael Jackson's Neverland Ranch in 2003.
Photographer: Frazer Harrison/Getty Images
The estate of Michael Jackson looks to have escaped a possibly hefty penalty for allegedly undervaluing the late singer’s assets.
A U.S. Tax Court judge denied the Internal Revenue Service’s bid to provide additional evidence in a case that was tried in Los Angeles in February. Because the agency didn’t show that it complied with certain procedural requirements, it’s barred from seeking as much as 40 percent of the allegedly understated tax in penalties.