IRS says executors undervalued Prince’s estate by 50%

MINNEAPOLIS (AP) — The ongoing controversy over the money left behind by Prince when he died without a will is heating up again after Internal Revenue Service calculations showed that executors of the rock star’s estate undervalued it by 50%, or about $80 million.

The IRS determined that Prince’s estate is worth $163.2 million, overshadowing the $82.3 million valuation submitted by Comerica Bank & Trust, the estate’s administrator. The discrepancy primarily involves Prince’s music publishing and recording interests, according to court documents.

Documents show the IRS believes that Prince’s estate owes another $32.4 million in federal taxes, roughly doubling the tax bill based on Comerica’s valuation, the Star Tribune reported.

The IRS also has ordered a $6.4 million “accuracy-related penalty” on Prince’s estate, citing a “substantial” undervaluation of assets, documents show.

Prince’s death of a fentanyl overdose on April 21, 2016, created one of the largest and most complicated probate court proceedings in Minnesota history. Estimates of his net worth have varied widely, from $100 million to $300 million.

With Prince’s probate case dragging on, his six sibling heirs have grown increasingly unhappy, particularly as the estate has doled out tens of millions of dollars to lawyers and consultants.

Comerica and its lawyers at Fredrikson & Byron in Minneapolis maintain their estate valuations are solid. Comerica sued the IRS this summer in U.S. Tax Court in Washington, D.C., saying the agency’s calculations are riddled with errors.

“What we have here is a classic battle of the experts — the estate’s experts and the IRS’ experts,” said Dennis Patrick, an estate planning attorney at DeWitt LLP in Minneapolis who is not involved in the case. Valuing a large estate, Patrick added, “is way more of an art than a science.”

Comerica, a Dallas-based financial services giant, has asked the tax court to hold a trial in St. Paul. A trial could dramatically lengthen the settlement of Prince’s estate and generate more legal fees at the expense of Prince’s heirs, Patrick said.

Panorama Hispano is the regional news and information newspaper for Hispanic and other diverse communities.

US Hispanics are now the largest ethnic minority in the United States numbering 54.2 million as of July 2014. Serving: Buffalo, Rochester, Fredonia, Niagara Falls, NY and Erie, PA. Outside our Market area: Visit our affiliate at: http://www.impremedia.com/

Contact us: Contact@PanoramaHispanoNews.com

Featured News

Apr 14, 2024
Unfazed by danger and power, Guatemalan cardinal keeps up fight for migrants and the poor

HUEHUETENANGO, Guatemala (AP) — As more than 100 men carrying an elaborate float of Jesus halted before him, Cardinal Álvaro […]

Read More
Apr 14, 2024
Divisive? Not for moviegoers. ‘Civil War’ declares victory at box office.

Alex Garland’s provocative “ Civil War ” didn’t only ignite the discourse. The film also inspired audiences to go to […]

Read More
Apr 14, 2024
It’s almost April 15. Here’s how to reduce stress and get your taxes done

NEW YORK (AP) — For many people, tax season isn’t only about gathering W-2 forms or calling an accountant. It […]

Read More

popular categories

Featured (4,862)
Mundo Latino (1,972)
Locales / Regional (1,024)
Buffalo (2,015)
Dunkirk (1,590)
Rochester (1,569)
PA (1,166)
Negocios / Tecnología (939)
Tecnología y Science (192)
Salud (537)
Deportes (783)
Entretenimiento (720)
Extras (396)
Movies (203)
Viajes, Vida y Estilo (657)
Copyright © 2024 Panorama Hispano News. All Rights Reserved.
crossmenuchevron-downmenu-circlecross-circle
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram