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Michael Jackson’s Estate Challenges IRS in Tax Dispute

Virre;3962387 said:
I don´t know if the name was edited out by a moderator, was it?
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Bubs;3962391 said:
Oh I see, no wonder her name :crazy: was edited out
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yes some names, websites, links etc gets edited by moderators. so we would appreciate if you don't write them again but as the above exchange shows it is easy to guess who the posts are about.
 
Bubs said:
Oh I see, no wonder her name :crazy: was edited out

If I was a crook running Michael's estate, the first thing I would do is to pay debts and get out of probate as soon as possible. As soon as estate is out of probate, there would be no one overseeing what I do and how much money goes and where. You would think that looney scam artist woman you are talking about should know it, but no:doh:


Ps, a friendly advice. don't read her facebook or twitter posts too often, as she is toxic waste and too much of it can seriously harm you:)
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People keep reposting what she post and it shows on my timeline, most of the time I don't read what she writes. I've already been tricked by her once regarding a jacket I bought at the Bush auction. Won't fall for that again.
And I'm sorry I wrote her name, didn't know it wasn't allowed. Now I know that.
 
^^^^ I now have my twitter filtered down, if anyone RT's 'she who shall not be named' I unfollow. Clean and simple and is kinder to my blood pressure. ;)
 
This bit is from the last accounting and belongs to this thread:
“The executors have not yet resolved all of the creditors’ claims. There is litigation pending and there is an ongoing tax audit. Therefore, executors request that the time for administration of the estate be extended for one year after the court enters its’ order settling the account.”


Hopefully this is understood by those people who claims that executors purposely wants to keep the estate in probate :cheeky:
 
Bubs said:
If she hates Branca so much, she should be praying that the estate staying in probate as long as possible.
As for now when the estate is in probate, executors cannot do anything that judge doesn't approve. Everything they do, goes through the judge first. Every payment they make to anyone, has to be approved by judge first, as well if KJ needs an increase, it is up to judge to approve it.
If she thinks that Branca and McClain are robbing the estate, what is better solution than having the estate in probate as long as possible, so there is somebody to overlooking what they are doing. Once the estate is out of probate, Branca and McClain are not accountable to anyone, and they can do what they want without having to go to judge first. Also, once the estate is out of probate, we won't see any more accounting.
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in my opinion
She (or they) is/are praying for an end the probate time because the executors after that will be open for their attacks. In that moment who the probate time is away they will claim every pups from Branca/McClain in the press.
Think about the letter from the granny-napping-siblings: What were they doing with this letter? They put it to the medias (where the executors it could read).
They are waiting with impatience for an end of probate and after that they will do an attack after the other and the executors even can not response openly on that, are in the corner.


I hope the probate time will be still quite a few years and the executors will be escaped from these wretched people. They are really gruesome.
 
Why do you think the Executors wont be able to openly respond to any attacks once they are out of probate. What will stop them from defending themselves as always.?
 
qbee said:
Why do you think the Executors wont be able to openly respond to any attacks once they are out of probate. What will stop them from defending themselves as always.?
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I think it. Because the executors are bound to observe confidentality. As well: After ending of probate phase we will get no more opnely accounting documents (perhaps with the exception of the 20% charity distribution).
Therefore the exucutors will be at least reduced with their reacions and defences.
Only Michael's children will could speak if they are part of the administration. We will see wheter and what they will speak for the defence of their father's executors.
 
OK so they gave them some time to prepare. I hope this thing does not last too long.
 
as far as I can tell this is a different type of court. they would exchange written reports, witness lists - especially during the last month before the trial. Then the trial happens in front of judge / panel of judges who decide the case. Judge then takes it into consideration and makes a ruling. Extensions are rare but settlements before trial is quite common.
 
and it's taken off calendar because Estate and IRS is trying to settle all or parts of the dispute...
 
Ivy, do you have more info regarding IRS issue?
I have been reading your twitter and there are some interesting snippets, such as IRS getting their info regarding MJ's assets from the internet and media:D
 
^Really? If the irs are getting their valuations from the media then as every single media article, i mean every single one, pre 25 june, had mj as a down and out hasbeen and a damaged, child molesting freak, then they should rule that the $2,000 valuation for mj's image and likeness is far too high. America can't have it both ways - completely denigrate mj as an artist and a human being for the last 20 yrs of his life in the media, making a laughing stock of him at award ceremonies, have the justice authorities target him relentlessly as a child molester, and then as soon as he dies, suddenly say his image and likness is worth half a billion dollars and can we have 40% of that. I hope the estate tells them where to go on that, they have plenty of evidence of how his image and likness was valued in usa.
 
This is from Ivy's twitter

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^Oh thanks, bubs. I thought the whole thrust of the irs claim was that they had wildly different valuations on the assets already listed by the estate,not that there are brand new assets which haven't been disclosed.

I hope the irs doesn't get another penny. Lol at the court saying media reports re mj are reliable.
 
I think the court (superior court btw) was being sarcastic with that reliable comment.

This comes from a hearing at superior court at Tohme case. It's from 2012. Estate was talking about how important they need to get accounting from Tohme and it was due to IRS Estate tax issues. Estate commented about bank accounts , bankers boxes that they couldn't access (under Tohme's name or control) and they couldn't properly respond to IRS. and then this exchange happens. Judge asks to Estate is you cannot access to those and don't know what's there how does IRS know? and that's the exchange.

and yes major dispute is about valuation differences but there's also this

Personal property not reported : $0 / $45,000,000

IRS thinks Estate didn't report $45 Million worth property.
 
The IRS is not as reliable as I thought. They are auditing me again for 11-13 tax years. I told the guy they already did. He tells me no that they cannot audit you more than once for the same year and that he has no information about a prior audit. Thank goodness I dug around and found 2 papers where they audited me and asked for more money, which I paid. Where do they keep documents I don't know, because they have a computer system. I suggest people don't throw away any papers from them after years have passed because they come back years later when they need more money and tell you you owe them and add interest to it.

It seems going to the internet for information is the thing to do these days, and the IRS is following the modern trend. I hope the estate have a result that would be to their advantage.
 
I have not throw away any taxs papers just in case i need them. You have got to watch the IRS.
 
ivy said:
I think the court (superior court btw) was being sarcastic with that reliable comment.

This comes from a hearing at superior court at Tohme case. It's from 2012. Estate was talking about how important they need to get accounting from Tohme and it was due to IRS Estate tax issues. Estate commented about bank accounts , bankers boxes that they couldn't access (under Tohme's name or control) and they couldn't properly respond to IRS. and then this exchange happens. Judge asks to Estate is you cannot access to those and don't know what's there how does IRS know? and that's the exchange.

and yes major dispute is about valuation differences but there's also this

Personal property not reported : $0 / $45,000,000

IRS thinks Estate didn't report $45 Million worth property.
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Now that not good in the bold.


This is what happen when you have crook ppls working for you imo common sense would tell you you are to report all of your income taxs to the IRS this should have never happen plain and simple but whose does simple now days.



Question sense the Estate can't respond to IRS what next?
 
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Forbes had an article re the IRS 'double-dipping"--taking $ twice from the same source by means of 2 tax laws. I read it quickly but maybe it's been posted earlier in this thread.

I think it is clear that his worth was not great in 09 re value of his brand b/c AEG was worried re sales and were shocked at the demand, and regular (not VIP) prices were for TII were ridiculously low ($70 per ticket), which is maybe part of why the demand was so great. Even though the demand was huge, the O2 is a small venue and can only hold so many (15k I think) compared to a larger stadium (like Azteca in Mexico City).

IRS sucks with what they are doing--asking way too much and going for the jugular.
 
Bonnie Blue said:
Pretty sure mj was unaware he had $45m in personal property in 09.
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If the IRS is supposedly reading the internet, could they be referring to the art work that Thome gave away? Was Thome doing that to avoid some kind of tax bill or something? I still find it strange that he was giving away stuff like that willy nilly. Has to be a reason.
 
The Internal Revenue Service says it made a mistake in valuing Michael Jackson’s estate. Nope, the IRS hasn’t abandoned its much discussed claim for $702 million in extra taxes and penalties—a bill Jackson’s estate is fighting in U.S. Tax Court. Instead, the tax agency is upping its demand by $29 million to nearly $731 million.
In a previously unreported court filing, the government says that IRS auditors originally thought the King of Pop owned only 50% of certain master recordings at his death in June 2009, when he really owned 100% of them. That 100% interest was worth $91 million by the IRS’ figuring, compared to the $11 million reported on the Jackson estate tax return.
The change brings the IRS’ valuation of Jackson’s estate and lifetime taxable gifts up to $1.178 billion, compared to the $7 million the estate reported. The IRS now wants a total of $525.6 million in tax and $205.1 million in gross valuation misstatement and negligence penalties. (Any interest owed will be on top of that.) Of course both the IRS and the estate’s values are best regarded as opening bids in what could be a long negotiation. A trial, if there is one, is far off.
Indeed, in a joint status report filed with the Tax Court last month, lawyers for the government and the estate say that while they’re close to settling four relatively small issues and have dueling appraisers discussing the value of Jackson’s personal tangible property, they don’t expect a speedy resolution of the big dollar issues in the case. Those involve the value of Jackson’s intangible and intellectual property (his name, likeness and his interests in music he wrote or performed) as well as the value of two trusts he apparently set up to borrow against his assets and to transfer assets to his heirs at minimal tax cost during his life.
The two trusts hold Jackson’s music publishing rights as well as his 50% interest in a joint music publishing venture with Sony Corp. Known as Sony/ATV Music Publishing, the venture is the largest music publishing company in the world and owns or administers millions of songs, including Beatles songs Jackson bought back in the 1980s. The estate placed the value of the assets transferred through the two trusts at just $2.2 million, whereas the IRS says the taxable value was $527.5 million.
Forbes senior editor Zack O’Malley Greenburg, who wrote a recent book on the Jackson business empire, estimates the Jackson estate has earned more than $700 million since the singer’s death, as his music has had a resurgence, with new releases, two Cirque du Soleil shows based on his work , the concert film This Is It and even an endorsement deal with PepsiCo PEP +0.99%. But at the time of his death, the economy was in the dumps and Jackson’s image was considerably less golden, in part due to allegations of child molestation. It’s the value of his image at death that matters for estate taxes.
The estate valued Jackson’s name and likeness at a trifling $2,105, whereas the IRS contends they were worth $434 million. Despite the unique circumstances surrounding Jackson, the resolution could well affect how other celebrity estates are taxed in the future.
The value of a celebrity’s image was also at issue in two recent U.S. Tax Court decisions involving the income taxation of endorsement and appearance fees paid to professional golfers Sergio Garcia and Retief Goosen and is an issue in an ongoing Tax Court case involving best selling crime writer Karin Slaughter. Ironically, in those cases, the IRS has tried to maximize Uncle Sam’s tax take by minimizing the value of such intellectual property, while taxpayers have argued (and Tax Judges have agreed) that a celebrity’s image has substantial value.
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http://www.forbes.com/sites/janetno...de-a-mistake-valuing-michael-jacksons-estate/
 
The IRS is really getting crazy desperate IMO. I guess they want Michael to save us from the Great Recession all by himself.
 
barbee0715 said:
The IRS is really getting crazy desperate IMO. I guess they want Michael to save us from the Great Recession all by himself.
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IRS goes after anyone if they sniff there are dollars to be collected:D
I read this article last week about another millionaire estate that is going to court due the tax dispute
http://www.startribune.com/business/277293871.html
So no, MJ's estate is not the only one they are after.
 
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