Michael Jackson's financial woes might be nearly twice as bad as once thought, now that the IRS has gotten involved.
It was believed that the Jackson estate had paid off the last of his personal debt during 2012, thanks to the success of the Cirque de Soleil touring stage show and the "This Is It" concert film. Jackson had a total personal debt surpassing $500 million when he passed away in 2009, however his continuing popularity as a performer led to significant profits for most projects launched under his name. The IRS dropped a bombshell amidst the Jackson family's ongoing trial against concert promoter AEG Live.
According to the agency, the Jackson estate owes more than $702 million in back taxes and penalties since 2009. The estate reportedly valued its taxable value as $7 million in total during 2009, a claim the IRS alleges is wildly off base. Among the claims made by the Jackson estate was that Michael's "image and likeness" was worth a mere $2,105. The IRS estimated the true value to be nearer to $434 million.
For now, the estate has been issued a call for $505.1 million in back taxes, along with $196.9 million in penalties. They won't need to pay up unless a court rules in favor of the IRS's claim, but a representative for the estate has said that $100 million has already been paid toward the tax total. That number trumps the estate's estimate of $7 million by quite a bit, so it seems the IRS may be on to something.
However, the Jackson family will have no problem paying off the pop star's back taxes if it wins its lawsuit against AEG; the family is pursuing more than $40 billion in damages.
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