The ongoing controversy over the money the Prince left behind when he died intestate is heating up again after U.S. Revenue Service calculations showed that the custodians of the rock star’s estate had added 50 pounds. % on, or around $ 80 million (£ 58.5 million).
The IRS has determined that the Prince’s estate is valued at $ 163.2 million (£ 119.3 million), exceeding the $ 82.3 million (£ 60.2 million) valuation set by Comerica Bank & Trust, the estate’s administrator. -into.
The distinction primarily concerns The Prince’s musical publishing and recording interests, according to court documents.
Documents show the IRS estimates that another 32.4 million dollars (£ 23.7 million) in Prince’s estates are in federal taxes, nearly doubling the tax bill based on Comerica’s valuation, the Star said. Tribune.
The IRS has also imposed a $ 4.4 million (£ 4.7 million) “accuracy-related penalty” on The Prince’s estate, citing a “substantial” undervaluation of assets, documents show.
The Prince’s death of fentanyl overdose on April 21, 2016, created one of the largest and most complex probation court proceedings in U.S. state history in Minnesota.
Estimates of its net worth have varied widely, from $ 100 million (£ 73.1 million) to $ 300 million (£ 219.3 million).
With the Prince’s affirmative issue slowing down, his six brother-in-law are increasingly disillusioned, especially as the estate has donated tens of millions of dollars to lawyers and advisers.
Comerica and its lawyers at Fredrikson & Byron in Minneapolis maintain that their estate valuations are firm.
Comerica denied the IRS over the summer in U.S. Tax Court in Washington, DC, saying the agency’s calculations are full of errors.
“What we have here is a classic battle of the experts – the real estate experts and the IRS experts,” said Dennis Patrick, an estate planning lawyer at DeWitt LLP in Minneapolis who is not involved in the issue.
Valuing a large estate, Mr Patrick said, “it is far more of an art than a science”.
Comerica, a Dallas-based financial services giant, has asked the tax court to hold a lawsuit. A lawsuit could significantly expand the Prince’s estate settlement and generate more legal taxes at the expense of the Prince’s heirs, Mr Patrick said.