Michael Jackson Estate's Funds Frozen By IRS In Tax Dispute With His Family

Michael Jackson Estate's Funds Frozen By IRS In Tax Dispute With His Family

Michael Jackson's estate is in a legal dispute with the United States Internal Revenue Service (IRS), and it's now affecting his children and mother. Moreover, the estate temporarily froze the distribution of trust funds to his three kids Prince, Paris, and Bigi, as well as to his mother Katherine Jackson. This is due to an unresolved tax issue with the IRS, per documents reportedly obtained by AllHipHop, whose current deadlock is thanks to an open audit. Furthermore, this started with an IRS audit that suggested the estate owed $700 million in taxes and penalties, undervaluing the late superstar's assets significantly.

Even with the estate's executors seeing a court win in 2021, a new motion to reevaluate Michael Jackson's catalog and its worth made this gray area persist. Apparently, it's because of this question mark around the estate's value that the family can't currently access the trust funds. Nevertheless, the estate's legal team asked a judge to sign off on earmarking a portion of the funds for the family trust, something that the court withheld approval of due to not being able to determine a "safe" amount for distribution. In response, estate attorneys suggested a temporary "family allowance" for the beneficiaries in order to mitigate some of this monetary strain.

Read More: Michael Jackson's Iconic Neverland Ranch Is Getting Updated For an Upcoming Biopic

Michael Jackson Performing In 1996

Michael Jackson performs on stage on his HIStory tour in December 1996. (Photo by Phil Dent/Redferns/Getty Images)

Elsewhere, a previous development for the Michael Jackson estate was Sony Music Group's $600 million purchase comprising of half of his music catalog back in February. Katherine Jackson herself issued legal contest to this move and sought to cover her legal fees with estate funds, which the estate was in disagreement with. In fact, Bigi Jackson filed paperwork in March to challenge Katherine's attempt to use the estate's money to pay for her legal processes. This further complicated the situation for the family, and may still be a point of contention.

Meanwhile, Michael Jackson was in the headlines recently for completely unrelated reasons concerning references to him in the Drake and Kendrick Lamar beef. Regardless of that, it's unclear whether the estate will ever see a resolution to the issues represented by this new legal development with the IRS. The King Of Pop's name, likeness, and artistry continue to make a lot of cash and maintain their ubiquity and legend status in pop culture. Will this long-lasting success impact how the court and the government agency views the estate? We will see.

Read More: Michael Jackson's Company Wants Accusers Blocked From Seeing Nudes

The post Michael Jackson Estate's Funds Frozen By IRS In Tax Dispute With His Family appeared first on HotNewHipHop.

via: https://www.hotnewhiphop.com/810907-michael-jackson-irs-dispute-taxes-family-estate-frozen-music-news

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