As the saying goes, “Nothing is certain in life but death and taxes.” Apparently, if you’re rich enough, the taxes continue after the death. Michael Jackson’s heirs—his mother Katherine and three children, Paris, Prince and Bigi—are finding that out the hard way.
According to PEOPLE, in a May 28 filing, the executors of the superstar’s will —John Branca and John McClain — made the decision that no one will receive “financial distribution” while a legal dispute with the IRS continues. The issues started in 2021 when the IRS “issued a note of deficiency” after auditing its federal estate tax return and finding that it “undervalued its assets.” The IRS claimed it owed “an additional $700 million in taxes and penalties.”
The estate won its dispute on the matter, but the its “motion for reconsideration” surrounding the court’s value of the King of Pop’s music catalog, which is owned by Sony music, is still pending.
This isn’t necessarily a quick process, as the estate’s value for tax purposes has to be decided before the IRS and estate have to “agree to the value of deduction” before anything can be finalized.
Attorneys wanted to set something aside for “administration,” but Branca and McClain claim that without an accurate value determined, they can’t “possibly determine what amount could be safely distributed at this time.” Add in the 20 percent of the estate that goes to charity, and this is all so messy.
In the ‘80s and ‘90s, Jackson reached unparalleled levels of success with his music, videos, short films and merchandise. Even though it’s been 15 years since his death, his popularity is just as strong as it’s ever been. With that much money at stake, things were bound to get extra complicated.
Making matters worse, Katherine has frequently challenged Branca and McClain over decisions they’ve made about her son’s estate. As previously reported by The Root, Katherine’s legal issues with the estate may have led to a dispute with her grandson, Bigi.
At some point, Jackson’s family and his executors have to put all their differences aside and deal with this IRS issue, because right now, no one is winning.