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May 3, 2021
2021-0904

Tax Court rejects IRS valuation of Michael Jackson's estate, increases estate's value by $111m but imposes no penalties

In Estate of Michael Jackson, et al. v. Commissioner, T.C. Memo. 2021-48 (May 3, 2021), the Tax Court held that the value of Michael Jackson's estate was understated by approximately $111m but declined to impose penalties. In determining the estate's value, the court also found that the IRS's expert had significantly over valued the estate by approximately $500m more than the value reported on the estate tax return. 

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Estate of Michael Jackson v Commissioner

 

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