11 Aug The Artist Formerly Known as Prince’s Former Tax Troubles
The musician the world would eventually come to know simply as Prince and later called the Artist Formerly Known as Prince was born Prince Rogers Nelson in Minneapolis in 1958.
Prince’s career spanned more than four decades, during which he released 39 albums. He ranked as one of the best-selling musicians of all time, winning multiple Grammy awards, MTV music awards, and even an Academy Award for Best Original Song Score. Prince was inducted into the Rock and Roll Hall of Fame and the Grammy Hall of Fame and honored with the Billboard Icon Award and the President’s Merit Award.
The rockstar’s death due to an accidental fentanyl overdose shook the world in 2016. But despite an impressive music career and achieving iconic rockstar status, Prince did face some legal issues, including troubles with the IRS. And unfortunately, some of those issues with the tax authorities continue to impact his legacy years after his passing.
Tax Troubles in France
In July 2011, the French tax authorities lodged a request through the IRS asking Prince for supporting documentation for tax years 2009 and 2010. During this period, Prince held several concerts in France, and the French government believed Prince had an income tax liability. The summons was filed in federal court in Minneapolis, and Prince was summoned to make an appearance on October 18th. Prince and his legal team failed to respond, and the court was asked to enforce the request.
Tax Troubles in Minnesota
Prince owned a 20-acre piece of property in Chanhassen, including his Paisley Park estate. And Prince had a reputation for paying his taxes late for his property in Carver County. And in 2013, it was reported that Prince owed $1.6 million in taxes, placing the rockstar on the list of top tax liens. The delinquent property taxes he owed also involved tax years 2009 and 2010, similar to the tax troubles he faced with the French government.
Tax Troubles After Death
Prince died in 2016 at the age of 57 without leaving a will, creating one of the most complex probate court proceedings in the history of Minnesota.
Prince’s net worth is estimated between $100 to $300 million. And the IRS valued the musician’s estate to be worth $163.2 million – an amount twice what Comerica, the estate’s administrator, initially submitted. The discrepancy in the separate valuations is believed to be due to the rockstar’s recording and publishing interests. However, according to the IRS, Prince’s estate’s tax bill also owes another $32 million in federal taxes, regardless of Comerica’s valuation. On top of that, the IRS has ordered an “accuracy-related penalty” on the musician’s estate amounting to $6.4 million due to the undervaluation of assets.
We continue to see stories of Prince’s estate’s tax debt in the news, proving that tax troubles can ruin a legacy and impact heirs. If you have an IRS issue that you want to resolve before it’s too late, contact Golden Tax Relief today! Call 844 299 8936.