Michael Jackson is one of the most iconic figures in the world in the last century. It was learned that the late King of Pop who died in 2009 was nearly bankrupt. A tax trial for his estate probes into the singer's financial woes that could potentially leave his children penniless if it is proven that he owes over $1 billion US dollars in tax to the Internal Revenue Service (IRS).

The world was in shock when the news of Michael Jackson's death hit the headlines in 2009. Before his untimely death, the King of Pop was swarmed with child molestation allegations which added to the burden of his financial decline on top of his unregulated spending habits.

Daily Mail reports that a banker named David Dunn testified at the US Tax Court in Los Angeles and stated that Michael Jackson was nearly bankrupt when he died. Dunn adds that the King of Pop was over $300 million in debt due to the child molestation trial he faced. Additionally, the "Billie Jean" singer owed him over $300,000 for his services since working with Michael Jackson in 2007.

Michael Jackson was preparing for his "This Is It" comeback tour when he died from an overdose of drugs he used to sleep. Since the singer's death, revenue started pouring into his estate. The IRS claimed in 2013 that Michael Jackson owed more taxes as he had more assets that were undervalued.

New York Daily News reports that if the court favors the IRS, Michael Jackson and his estate could owe up to $1 billion in taxes and penalties. Michael Jackson's camp defends that the hitmaker was virtually penniless when he died because of the child molestation allegations and scandal. All of Michael Jackson's post-mortem earnings should not have been counted by the IRS, an estate expert told the outlet.

Do you think the IRS is right in penalizing Michael Jackson and his estate for more taxes and potentially leave his children penniless if they win? Tell us your thoughts in the comments below.