Beyonce Unpaid Taxes Reached $2.7 Million, IRS Says
Beyonce is challenging the Internal Revenue Service (IRS) claim that she owes the government a massive $2.7 million in taxes.
According to Robb Report, the "If I Were a Boy" singer filed a petition on April 17 arguing that the IRS made a handful of errors in determining her 2018 and 2019 tax returns.
In the documents acquired by Page Six, Beyonce's attorney cited an instance wherein an itemized deduction of $868,766, which was given to an unknown charitable organization in 2018, was disallowed by the IRS to be deducted for whatever reason.
The Grammy-winning artist founded the BeyGood Foundation, which has assisted in disaster relief, education, mental health, and other issues since 2013. She also supported several other charity groups throughout her career.
A Notice of Deficiency issued by the IRS was served to Beyonce last January 18, detailing the singer's unpaid taxes and penalties for 2018 and 2019.
The IRS claimed that Beyonce owes an additional $805,850 for the 2018 tax year and $1,442,747 in taxes for 2019, plus an additional $449,719.40 in combined penalties for both years. There is also interest included on these unpaid taxes.
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Beyonce Files Tax Separately From Billionaire Husband
Beyonce made the Tax Court petition as the sole taxpayer. The filing did not include her husband, Jay-Z.
According to Forbes, Jay-Z is the first rapper to become a billionaire, which values his fortune at $2.5 billion. He was one of Forbes' highest-paid entertainers in 2022.
It is common practice for high-income couples to file taxes separately, according to Forbes. Beyonce's tax return suggests that the couple is based in California.
When filing a separate return in California, each spouse must report one-half of community income plus their individual income.
Tax Court Procedure
Petitioning can start after receiving the Notice of Deficiency. From the notice date, a taxpayer has 90 days to submit a petition with the Tax Court or 150 days if they live outside the United States.
Other tax problems, such as interest abatement requests, reviews of certain collection efforts, and employee categorization determinations, are also under the Tax Court's scope.
Filing a petition in a Tax Court is the first step in any proceeding. The petition must be accompanied by the current filing cost of $60. If a taxpayer files a petition, he or she usually will not have to pay the underlying tax until the case has been resolved.
The earliest trial date is set for each case, and most issues are resolved through out-of-court settlements rather than trials.
However, if a case goes to trial, it is typically a low-key event held before a single judge and not a jury.
Beyonce is being represented in Tax Court by Michael C. Cohen of De Castro, West, Chodorow, Mendler & Glickfeld, Inc., although taxpayers can represent themselves in Tax Court.
Forbes estimated Beyonce's net worth at roughly $450 million in June 2022, but other sites like Celebrity Net Worth currently put that figure at around $500 million.
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Written by: Bert Hoover
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