Beyonce tax - Introduction
In this case, the "it" being the tax return... so say the IRS, anyway.
Yes, it has been reported in Law 360 that the Internal Revenue Service ("IRS") has issued a determination against Beyonce asserting that she owes the agency $3m in taxes, interest and penalties.
IRS argue Halo slipped
A petition was filed on Monday by the IRS. In it, they argued that Beyonce had failed to report royalty income in 2018.
In addition, it also stated that she had incorrectly claimed deductions for the same and the following year. This included the Qualified Business Deduction and also deductions for legal and professional fees and management fees.
The US tax agency says that she owes back taxes of $805k for the 2018 year and $1.4m for the 2019 year.
In addition, the IRS has imposed penalties of $161k and $288k for each respective year. On top of this, interest is estimated at around $264k.
Enough to make anyone... er... Sasha Fierce.
Musical tax miscreants - IRS hall of fame
It's no secret that the world of music is filled with glamour, fame, and fortune. But beneath the shimmering surface, some of our most beloved artists have found themselves in the crosshairs of the Internal Revenue Service (IRS). When the taxman comes knocking, even the brightest stars can find themselves in a financial bind. Let's take a look at some other music legends who've hit a sour note with the IRS.
- Willie Nelson: This country music icon faced a staggering $16.7 million tax bill in the early 1990s, ultimately leading to the seizure of his assets by the IRS. Nelson released an album called "The IRS Tapes: Who'll Buy My Memories?" to help pay off his debt, and with the help of his fans and friends, he managed to settle his debt by 1993.
- Lauryn Hill: The former Fugees member faced charges of tax evasion in 2012 after failing to file taxes on $1.8 million of income. Hill was sentenced to three months in federal prison and three months of home confinement, ultimately repaying her debt to the IRS.
- Lionel Richie: The "Hello" singer found himself saying goodbye to a chunk of his fortune when the IRS filed a lien against him in 2012, claiming he owed over $1 million in unpaid taxes. Richie settled his tax troubles by repaying the IRS in full.
- Ja Rule: Rapper Ja Rule, born Jeffrey Atkins, was sentenced to 28 months in prison in 2011 for tax evasion. He reportedly failed to pay taxes on more than $3 million of income earned between 2004 and 2006.
- Dionne Warwick: The legendary singer faced a massive $10 million tax debt in 2013, which led her to file for bankruptcy. She ultimately reached an agreement with the IRS and has since worked to resolve her financial woes.
Conclusion
We are told that Beyonce rejects these claims and has asked for a trial to help settle the dispute.
The US tax court case is Beyonce Knowles-Carter v Commissioner under docket number 5695-23.
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