publish time

04/01/2021

author name Arab Times

publish time

04/01/2021

MINNEAPOLIS: The ongoing controversy over the money left behind by Prince when he died without a will is heating up again after Internal Revenue Service calculations showed that executors of the rock star’s estate undervalued it by 50%, or about $80 million.

In this Feb 4, 2007 file photo, Prince performs during the halftime show at the Super Bowl XLI football game at Dolphin Stadium in Miami. For the first full sales week following Prince’s death on April 21, five of his albums were in Billboard’s top 10, at Nos 2, 3, 4, 6 and 7. Only Beyonce’s ‘Lemonade’ kept him from the top, Billboard says no artist has had that many albums in the Top 10. (AP)

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 discrepancy primarily involves Prince’s music publishing and recording interests, according to court documents. Documents show the IRS believes that Prince’s estate owes another $32.4 million in federal taxes, roughly doubling the tax bill based on Comerica’s valuation, the Star Tribune reported.

The IRS also has ordered a $6.4 million “accuracy-related penalty” on Prince’s estate, citing a “substantial” undervaluation of assets, documents show. Prince’s death of a fentanyl overdose on April 21, 2016, created one of the largest and most complicated probate court proceedings in Minnesota history. Estimates of his net worth have varied widely, from $100 million to $300 million.

With Prince’s probate case dragging on, his six sibling heirs have grown increasingly unhappy, particularly as the estate has doled out tens of millions of dollars to lawyers and consultants. Comerica and its lawyers at Fredrikson & Byron in Minneapolis maintain their estate valuations are solid. Comerica sued the IRS this summer in US Tax Court in Washington, DC, saying the agency’s calculations are riddled with errors.

“What we have here is a classic battle of the experts - the estate’s experts and the IRS’ experts,” said Dennis Patrick, an estate planning attorney at DeWitt LLP in Minneapolis who is not involved in the case. Valuing a large estate, Patrick added, “is way more of an art than a science.” Comerica, a Dallas-based financial services giant, has asked the tax court to hold a trial in St Paul.

A trial could dramatically lengthen the settlement of Prince’s estate and generate more legal fees at the expense of Prince’s heirs, Patrick said. Prince sold over 150 million records worldwide, ranking him among the best-selling music artists of all time. He was inducted into the Rock and Roll Hall of Fame in 2004, the UK Music Hall of Fame in 2006, and the Rhythm and Blues Music Hall of Fame in 2016. In 2016, he was posthumously honored with a Doctor of Humane Letters by the University of Minnesota.Prince has been honored with a star on the outside mural of the Minneapolis nightclub First Avenue, recognizing performers that have played sold-out shows or have otherwise demonstrated a major contribution to the culture at the iconic venue.