The IRS are seeking an additional $32.4 million in taxes from Prince's estate - more than double the original bill.
Prince
The US tax agency have reportedly valued the late singer's estate at $163.2 million - almost 50 per cent higher than the $82.3 million valuation proposed by Comerica Bank & Trust, the administrator of the estate,
According to the Star Tribune newspaper, the discrepancy between the two figures primarily centres around the 'Purple Rain' hitmaker's musical publishing and recording interests, with a $15 million difference in figures valuing the fair market price of Prince's ownership of NPG Music Publishing, and another $11 million valuation gap in his interest in his musical compositions.
As well as the revised tax bill, the IRS have also issued a $6.4million “accuracy-related penalty” on the estate.
Estate planning attorney Dennis Patrick - who is not involved with the proceedings - warned it could take "several years" for the dispute to be resolved.
Describing valuation of large estates as "way more of an art than a science”, he added: "What we have here is a classic battle of the experts – the estate’s experts and the IRS’ experts.
“It could be several years before they get this worked out if they don’t agree to a settlement. It depends on how hard the IRS is digging in its heels.”
Last March, Prince's siblings claimed they had yet to receive any money from his estate..
His sister Sharon and Norrine and brother John Nelson filed a legal claim seeking "payment for services and efforts provided to the estate and said they had spent "considerable time and investment in business matters related to the Estate. Unlike others, who have performed services for the Prince Estate, SNJ has not received any financial sums for numerous and repeated services they have contributed to the Estate."
They also allege that although they have not received any money, others have been paid "millions".
The court documents added that they have had to rely "solely on their pension, social security, personal savings and loans from friends to cover the costs needed to support the Prince Estate despite the millions paid to advisors, attorneys and others approved by the Court.
"As this Court is aware, the Estate has now been on-going for over three years. In this time, millions have been paid to the Personal Representatives, their accountants, attorneys, and legal advisors."
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