IRS Tag

Slammed: IRS Takes Big Chunk Out of Detroit Pistons Owner’s Estate

Who says the government is broke? The Internal Revenue Service (IRS) just took $388 million from the estate of Detroit Pistons owner Bill Davidson, according to Forbes.com. A dispute arose after Mr. Davidson passed away and the IRS claimed it was owed $2 billion in estate, gift, and generation-skipping taxes. The IRS argued that the Davidson Estate undervalued corporate stock and improperly valued self-cancelling installment notes (SCINs). As to the stock, the IRS said that the estate low-balled the value of privately held Guardian stock held in trust for Davidson’s children and grandchildren. Mr. Davidson’s estate took the IRS to U.S. Tax Court challenging...

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Battle Royal: IRS v. The Estate of Michael Jackson

The King of Pop faced numerous legal challenges during his life, but arguably the biggest battle is taking place after his passing. The Internal Revenue Service (IRS) is seeking close to $731 million from Michael Jackson’s estate. Yes, you read that number correctly - $731 million. How did the IRS arrive at such a huge tax bill? Well, IRS auditors determined that the value of Mr. Jackson’s estate totaled $1.17 billion. This means his estate qualifies for the top rate of the estate tax – a staggering 40 percent, according to bankrate.com. Therefore, the total tax bill includes $525.6...

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