Prince passed away in April of 2016 and since then, there has been an ongoing battle with his estate due to the absence of a will. Now, the IRS is claiming the music icon’s legacy has been extremely undervalued from a monetary perspective.
Stemming from a conflict with the singer’s publishing royalties, the IRS’ attorneys have deemed that Prince’s estate is worth much more than administrators of the estate claimed via their own assessment. According to the Associated Press, the “IRS determined that Prince’s estate is worth $163.2 million, overshadowing the $82.3 million valuation submitted by Comerica Bank & Trust, the estate’s administrator.”
The Star Tribune reports that court docs allege the IRS believes Prince’s estate owes another $32.4 million in federal taxes, which doubles the tax bill that was generated based on Comerica Bank & Trust’s assessment.
The Associated Press also reports the IRS ordered a $6.4 million “accuracy-related penalty” and cited a “substantial” undervaluation of assets.
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At the time of his passing, Prince did not have a will, which left his estate in a complicated state of affairs, according to USA Today. Prince’s estate was ultimately split six ways between between his siblings: sister Tyka Nelson, and half-siblings Sharon Nelson, Norrine Nelson, John Nelson, Alfred Jackson and Omarr Baker, who reportedly tried to wrestle more control of their late brother’s estate from its court-appointed administrator, Comerica Bank & Trust. Comerica has been handling business deals on behalf of the estate, according to a previous report from The Blast.
In December of 2019, it was reported that his sister Tyka had sold some of the estate to the private equity fund Primary Wave.
Comerica Bank & Trust has requested a trial in St. Paul, Minnesota to resolve the discrepancy between its valuation of Prince’s estate, and that of the IRS. If granted, the trial would further protract the resolution of the estate matters and add more legal fees.
