Four years after the pop icon’s untimely death, the IRS is still questioning the value of Prince’s estate.
What We Know:
- The American singer and musician Prince died back in April of 2016 after an accidental fentanyl overdose at his Paisley Park home in Chanhassen, Minnesota. According to NBC News, the singer died without a will, causing the Internal Revenue Service to investigate the ongoing controversy over the money he left behind.
- The IRS calculated that Prince’s estate was undervalued by the estate’s administrator, Comerica Bank & Trust, by 50%, which is roughly $80 million. The IRS determined that the real value of Prince’s estate is about $163.2 million.
- According to court documents, the discrepancy primarily involves the value of Prince’s music publishing and recording interests. Prince’s net worth was believed to be anywhere between $100 million to $300 million.
- As a result, the IRS has ordered Comerica to pay a $6.4 million “accuracy-related penalty”. The documents released also show that the IRS believes that the estate owes another $32.4 million in federal taxes.
A trial is in preparation between the estate and the IRS which could dramatically lengthen the settlement of Prince’s estate and add-up legal fees at the expense of his heirs.
