Executors undervalued Prince’s estate by 50%, US tax authorities say

&Tab;&Tab;<div class&equals;"wpcnt">&NewLine;&Tab;&Tab;&Tab;<div class&equals;"wpa">&NewLine;&Tab;&Tab;&Tab;&Tab;<span class&equals;"wpa-about">Advertisements<&sol;span>&NewLine;&Tab;&Tab;&Tab;&Tab;<div class&equals;"u top&lowbar;amp">&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;<amp-ad width&equals;"300" height&equals;"265"&NewLine;&Tab;&Tab; type&equals;"pubmine"&NewLine;&Tab;&Tab; data-siteid&equals;"111265417"&NewLine;&Tab;&Tab; data-section&equals;"1">&NewLine;&Tab;&Tab;<&sol;amp-ad>&NewLine;&Tab;&Tab;&Tab;&Tab;<&sol;div>&NewLine;&Tab;&Tab;&Tab;<&sol;div>&NewLine;&Tab;&Tab;<&sol;div><p>The continuing controversy over the money left behind by Prince when he died without a will is heating up again after the US’s Internal Revenue Service calculations showed that executors of the rock star’s estate undervalued it by 50&percnt;&comma; or about 80 million dollars &lpar;£58&period;5 million&rpar;&period;<&sol;p>&NewLine;<p>The IRS determined that Prince’s estate is worth 163&period;2 million dollars &lpar;£119&period;3 million&rpar;&comma; overshadowing the 82&period;3 million dollars &lpar;£60&period;2 million&rpar; valuation submitted by Comerica Bank &amp&semi; Trust&comma; the estate’s administrator&period;<&sol;p>&NewLine;<p>The discrepancy primarily involves Prince’s music publishing and recording interests&comma; according to court documents&period;<&sol;p>&NewLine;<p>Documents show the IRS believes that Prince’s estate owes another 32&period;4 million dollars &lpar;£23&period;7 million&rpar; in federal taxes&comma; roughly doubling the tax bill based on Comerica’s valuation&comma; the Star Tribune reported&period;<&sol;p>&NewLine;<p>The IRS also has ordered a 6&period;4 million dollar &lpar;£4&period;7 million&rpar; &OpenCurlyDoubleQuote;accuracy-related penalty” on Prince’s estate&comma; citing a &OpenCurlyDoubleQuote;substantial” undervaluation of assets&comma; documents show&period;<&sol;p>&NewLine;<p><&excl;--Ads1--><&sol;p>&NewLine;<p>Prince’s death of a fentanyl overdose on April 21&comma; 2016&comma; created one of the largest and most complicated probate court proceedings in the history of the US state of Minnesota&period;<&sol;p>&NewLine;<p>Estimates of his net worth have varied widely&comma; from 100 million dollars &lpar;£73&period;1 million&rpar; to 300 million dollars &lpar;£219&period;3 million&rpar;&period;<&sol;p>&NewLine;<p>With Prince’s probate case dragging on&comma; his six sibling heirs have grown increasingly unhappy&comma; particularly as the estate has doled out tens of millions of dollars to lawyers and consultants&period;<&sol;p>&NewLine;<p>Comerica and its lawyers at Fredrikson &amp&semi; Byron in Minneapolis maintain their estate valuations are solid&period;<&sol;p>&NewLine;<p>Comerica sued the IRS this summer in US Tax Court in Washington&comma; DC&comma; saying the agency’s calculations are riddled with errors&period;<&sol;p>&NewLine;<p><&excl;--Ads2--><&sol;p>&NewLine;<p>&OpenCurlyDoubleQuote;What we have here is a classic battle of the experts – the estate’s experts and the IRS’ experts&comma;” said Dennis Patrick&comma; an estate planning attorney at DeWitt LLP in Minneapolis who is not involved in the case&period;<&sol;p>&NewLine;<p>Valuing a large estate&comma; Mr Patrick added&comma; &OpenCurlyDoubleQuote;is way more of an art than a science”&period;<&sol;p>&NewLine;<p>Comerica&comma; a Dallas-based financial services giant&comma; has asked the tax court to hold a trial&period; A trial could dramatically lengthen the settlement of Prince’s estate and generate more legal fees at the expense of Prince’s heirs&comma; Mr Patrick said&period;<&sol;p>&NewLine;&Tab;&Tab;&Tab;<div style&equals;"padding-bottom&colon;15px&semi;" class&equals;"wordads-tag" data-slot-type&equals;"belowpost">&NewLine;&Tab;&Tab;&Tab;&Tab;<div id&equals;"atatags-dynamic-belowpost-68e21b4583c92">&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;<script type&equals;"text&sol;javascript">&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;window&period;getAdSnippetCallback &equals; function &lpar;&rpar; &lbrace;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;if &lpar; false &equals;&equals;&equals; &lpar; window&period;isWatlV1 &quest;&quest; false &rpar; &rpar; &lbrace;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&sol;&sol; Use Aditude scripts&period;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;window&period;tudeMappings &equals; window&period;tudeMappings &vert;&vert; &lbrack;&rsqb;&semi;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;window&period;tudeMappings&period;push&lpar; &lbrace;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;divId&colon; 'atatags-dynamic-belowpost-68e21b4583c92'&comma;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;format&colon; 'belowpost'&comma;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&rcub; &rpar;&semi;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&rcub;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&rcub;&NewLine;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;if &lpar; document&period;readyState &equals;&equals;&equals; 'loading' &rpar; &lbrace;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;document&period;addEventListener&lpar; 'DOMContentLoaded'&comma; window&period;getAdSnippetCallback &rpar;&semi;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&rcub; else &lbrace;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;window&period;getAdSnippetCallback&lpar;&rpar;&semi;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&rcub;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;<&sol;script>&NewLine;&Tab;&Tab;&Tab;&Tab;<&sol;div>&NewLine;&Tab;&Tab;&Tab;<&sol;div>


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