LOS ANGELES (CelebrityAccess)—Michael Jackson’s family has been blocked from receiving money from the late singer’s trust until an alleged tax bill is settled. An IRS audit of the estate’s tax return has led to a tax dispute involving a staggering $700 million claim for back taxes and penalties, alleging undervaluation of the estate’s assets.
The “Thriller” hitmaker died at the age of 50 in 2009, naming Prince (27), Paris (26), and Bigi-formerly known as “Blanket” (22), the beneficiaries of his trust, while his mother Katherine (94), is the sole beneficiary of a sub-trust in his will.
Although the estate initially emerged victorious in a court battle over the tax dispute, a motion for reconsideration regarding the valuation of Jackson’s valuable music catalog, Mijac (owned by Sony Music), is pending. This uncertainty has frozen the distribution of all funds to Jackson’s beneficiaries.
Efforts to access funds during this legal limbo have been fruitless, as the estate and IRS cannot agree on the value of deductions until the matter is resolved. Jackson’s family had hoped for a partial distribution to cover living expenses, but their request was denied. As a result, they’re left in a financial bind until the tax issue is sorted out.
To make matters worse, Jackson’s youngest son, Bigi, is embroiled in a legal battle with his grandmother, Katherine. He’s seeking to prevent her from using estate funds to finance an appeal related to Jackson’s music catalog sale to Sony for a reported $600 million.
