The IRS is reportedly claiming that the people who manage the singer's estate have majorly undervalued its worth. The IRS believes the estate is worth more than $160 million which is nearly double the close to $80 million it was originally valued at. As expected, this new appraisal will result in the estate paying more in taxes.
This tax hike will mirror the IRS's new value with the estate paying $32.4 million to the government which is double what it expected to shell out. The IRS also wants to issue a $6.4 million penalty for the original undervaluation. Yet, Prince's estate plans on fighting this judgment filing legal documents in the summer claiming that the IRS's numbers were incorrect.
Prince died of a Fentanyl overdose in 2016. At the time of his death, the singer had no known will. This left his sister and five half-siblings in line to inherit the estate. Since his death, Prince's estate has been generating millions of dollars, prompting the IRS to try to accurately value its worth. And along with challenging the IRS, the estate has also filed a lawsuit against Jay-Z's Roc Nation for allegedly infringing on copyrights by continuing "to reproduce, distribute and publicly perform" Prince's music on Tidal.