Prince's Estate Is Being Hit with a Massive Tax Bill by the IRS
The late musician's estate is severely undervalued, according to the agency
Published Jan 04, 2021The taxman is coming after Prince's estate after an executor allegedly undervalued its net worth by $80 million USD, leading to quite the intense tax bill.
The IRS has determined that Prince's estate is actually worth about double what was initially reported by the Dallas-based financial administrator, Comerica Bank & Trust, for a total of $163.2 million USD, according to TMZ.
As a result of the claim, the IRS has ordered the estate to fork out $32.4 million USD owed in federal taxes, plus pay a $6.4 million USD "accuracy-related penalty."
Prince's estate filed legal documents last year claiming those numbers were incorrect, though the legal battle appears to be ongoing — and could prove costly.
The posthumous audit comes nearly five years following the legendary musician's death in 2016. Prince died on April 21 of that year from an opioid overdose.