According to a new report, Michael Jackson’s children owe a huge $700 million tax bill that could wipe out much of their inheritance.
The late singer’s daughter, Paris and son Prince, as well as younger son Blanket could lose more than half their inheritance in the legal battle with the Internal Revenue Service.
The IRS is involved in a tax trial in Los Angeles against Michael’s estate, with the agency demanding back cash in back taxes and penalties.
The verdict should be revealed in a few weeks and depending on the decision, the three children might fall into great debt.
According to an insider, if the IRS wins, it could “have a dramatic impact on a lot of lives.”
Their inheritances are due to be paid in stages from the time each child turns age 21. Other Jackson family members, including Michael’s mom Katherine, 86, could also be impacted.
Furthermore, the King of Pop was almost bankrupt before he died in 2009.
“He was on the edge,” investment banker David Dunn reported. “He was desperately trying to figure out what he could do to address his financial crisis.”
After his death, executors John Branca and John McClain filed documents claiming the musician’s image was virtually worthless due to his drug use and other allegations.
But a court battle first began in 2013 when the IRS claimed Michael’s estate had undervalued multiple assets, including the worth of MJ’s likeness and image at the time of his death.
The estate is now worth more than $1 billion.
The story is still developing.