The executors of Prince’s estate undervalued it by 50 percent – or about $80 million (all figures U.S.) – according to the U.S. Internal Revenue Service (IRS).
The Star Tribune reported that court documents show the IRS determined Prince’s estate is worth $163.2 million – meaning it owes an addition $32.4 million in taxes. The IRS also imposed a $6.4 million penalty.
Estate administrator Comerica Bank & Trust had submitted a valuation of $82.3 million and filed a tax return in 2017 that was disputed by the IRS. Comerica sued the IRS last summer alleging its calculations are incorrect.
The IRS claims Prince’s real estate holdings are worth $5.7 million more than declared and his ownership of NPG Music Publishing and NPG Records are worth a combined $83.4 million, not the $40.5 million the estate declared.
The singer didn’t have a will when he died of a fentanyl overdose in April 2016, sparking a complicated probate court process involving Prince’s six siblings, who range in age from 50 to 80.