Michael Jackson's children, Prince, Paris, and Bigi, along with his mother, Katherine, have been temporarily cut off from receiving money from the late singer's trust. This decision stems from an ongoing legal battle between Jackson's estate and the IRS over a significant tax dispute.
Court documents obtained by People reveal that following a tax audit, Jackson's estate was issued a "note of deficiency," alleging it had undervalued its assets and owed approximately $700 million in taxes and penalties. Despite contesting these findings and winning a partial victory in tax court in 2021, the estate's value remains under scrutiny, particularly concerning the valuation of Jackson's music catalog, Mijac.
As the estate awaits a final ruling on its value, executors have denied requests to distribute funds to the Jackson family trust, citing uncertainty about what amounts could be safely distributed. The executors have proposed that the family be provided for through a "family allowance" instead.
The legal wrangling has broader implications, especially following Sony Music Group's recent deal to purchase half of Jackson's music catalog for at least $600 million. This complex financial landscape continues to delay any resolution, leaving Jackson's heirs in financial limbo until the estate's value is conclusively determined and the tax obligations settled.
