Microsoft Cloud Authors: Elizabeth White, Yeshim Deniz, Serafima Al, Janakiram MSV, John Katrick

Blog Feed Post

The Jackson Estate Continues to Tangle with the IRS

Almost five years after Michael Jackson’s untimely death there is still dispute over the estate taxes owed.

Jeffrey S. Freeman, J.D., LL.M

Nearly five years after his death, Michael Jackson is still making headlines, but not for his musical abilities. This time it is for a fight with the IRS over his estate. The IRS recently informed Jackson’s executors that the estate owes $505 million in taxes and an additional $197 million in penalties, all together totally over $702 million.

irisAt the time of Jackson’s death in June 2009 Jackson’s executors estimated his net worth to be $7 million. That was not a typo, the IRS states that the Jackson estate owes 100 times the amount of its estimated net worth in taxes. How can this be? The difference is in the estate valuation, which the IRS did not agree with Jackson’s return. The IRS valued the estate at $1.125 billion, a difference so vast that it qualifies for a gross valuation misstatement penalty which allows the government to double the usual 20% underpayment penalty.

So where did the estate go wrong? The first error was not realizing the high-potential for an IRS audit. There are less than 10,000 estates that are valuable enough to be required to file with the IRS. Since the value of these estates are relatively high, they have a very high probability of being audited, but few actually end up in Tax Court.

Second, the valuation of many items in Jackson’s estate were highly suspect. For example the estate put the value of Jackson’s interest in the trust that owns the rights to most of the Beatles’ catalog and Jackson’s songs at zero. The IRS disagreed and valued Jackson’s interest at $469 million. Equally confusing is the fact that Jackson took out a loan against the catalog for $320 million. Jackson may have tried to transfer the catalog to his children while he was alive, but the IRS found issues with the transfer and thus it is valued with the estate.

Valuations for celebrities can be challenging as there are not always comparable items to estimate the value. Jackson’s likeness was estimated at $2,105 which the IRS deemed drastically low and estimated it at $434 million. Additional disputes were over tangible property like Jackson’s extensive line of vehicles including three Rolls-Royces and a 2001 Bentley Arnage.

The Jackson estate seems to be preparing for a hard trial by hiring a top litigation team. But, looking at the IRS valuation of Jackson at $434 million they are not backing down either. Estate planning is a complex business and when not handled properly it can leave a mess than carries on for years.

About Freeman Tax Law

Freeman Tax law has extensive experience in assisting clients with wealth management and complex estate planning. At Freeman Tax Law, the attorneys and professional staff have vast experience with foreign tax compliance (FATCA and OVDP), international tax planning, and resolving tax controversies involving offshore banking matters. The expert staff at Freeman Tax Law are also equipped to handle all domestic and international tax law matters.

Freeman Tax Law

(855) 935-5945

[email protected]


The post The Jackson Estate Continues to Tangle with the IRS appeared first on SmartFinds Internet Marketing.

Read the original blog entry...

More Stories By Melih Oztalay

I have over 20 years of experience in developing successful, efficient and strategic web marketing and advertising solutions for businesses. Working through an entrepreneurial framework, I have focused on business development, sales, execution, and management. Combining solid knowledge of marketing and advertising with information technology, I have been successful in being able to apply digital technologies to the needs of businesses. As an early adopter of new ideas and technology, my clients are able to benefit from imaginative and effective programs that keep them ahead of their competition.

The Company

Smartfinds is a digital marketing agency working with national and global corporate clients including domestic and off-shore franchise operations with their online marketing efforts. We offer a number of core competencies including web marketing research, analysis, strategies, and tactics; website development and SEO; organic search engine marketing with content marketing and social media marketing; Google AdWords advertising including pay-per-click; Google Analytics and Google Webmaster Tools interpretation; Local Store Marketing including customer ratings and reviews management; and more.

Our entrepreneurial business approach employs open-mind creativity and early-adopter assertiveness along with in-depth planning for business growth. Our goal is to be a strategic partner with our clients focused on increasing traffic to the website, business growth, generate leads, increase sales and revenues.

@ThingsExpo Stories
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of bus...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER give you detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPO also offers s...
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
The IoT Will Grow: In what might be the most obvious prediction of the decade, the IoT will continue to expand next year, with more and more devices coming online every single day. What isn’t so obvious about this prediction: where that growth will occur. The retail, healthcare, and industrial/supply chain industries will likely see the greatest growth. Forrester Research has predicted the IoT will become “the backbone” of customer value as it continues to grow. It is no surprise that retail is ...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
DXWorldEXPO LLC announced today that "Miami Blockchain Event by FinTechEXPO" has announced that its Call for Papers is now open. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Financial enterprises in New York City, London, Singapore, and other world financial capitals are embracing a new generation of smart, automated FinTech that eliminates many cumbersome, slow, and expe...
Cloud Expo | DXWorld Expo have announced the conference tracks for Cloud Expo 2018. Cloud Expo will be held June 5-7, 2018, at the Javits Center in New York City, and November 6-8, 2018, at the Santa Clara Convention Center, Santa Clara, CA. Digital Transformation (DX) is a major focus with the introduction of DX Expo within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive ov...