MINNEAPOLIS (AP) – The The ongoing dispute over the money left behind by Prince when he died without Internal Revenue Service calculations shows that the executors of the rock star’s assets have reduced it by 50%, or about $ 80 million.
The IRS determined that Prince has assets of $ 163.2 million, overseeing the $ 82.3 million valuation submitted by Comerica Bank & Trust, the administrator of the estate. According to court documents, the discrepancy mainly involves Prince’s interests in music publishing and recording.
As reported by the Star Tribune, the IRS believes Prince’s assets amount to approximately $ 32.4 million in federal taxes, roughly double the tax bill based on Comerica’s valuation.
The IRS has also ordered an “accuracy-related penalty” of $ 6.4 million on Prince’s assets, citing a “substantial” devaluation of the property, documents show.
Prince’s death of a fentanyl overdue on April 21, 2016, created the largest and most complex probate court proceedings in Minnesota’s history. Estimates of their net worth vary widely, from $ 100 million to $ 300 million.
With the Prince’s probate case dragged on, his six siblings heirs have become increasingly unhappy, especially as the estate owes tens of millions of dollars to lawyers and consultants.
Fredrickson and Byron’s attorneys in Comerica and Minneapolis solidify their property valuations. Comerica sued the IRS in Washington DC’s US Tax Court this summer, stating that the agency’s calculations were plagued with errors.
Dennis Patrick, an estate planning attorney at DeWitt LLP of Minneapolis, said, “What we have here is a great battle of experts – experts in estates and experts in the IRS”. For a larger asset, Patrick said, “an art is more a way than a science.”
Dallas-based financial services giant Comarica has asked the tax court to sue St. Paul. A trial could dramatically prolong the disposal of Prince’s assets and generate more legal fees at the expense of Prince’s heirs, Patrick said.
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