Prince’s Estate Sets Date for IRS Battle Over Catalog Value
A trial date for the battle between Prince's estate and the Internal Revenue Service over the value of the late star's music catalog has been set for March 21, 2022.
As previously reported, Prince's estate originally told the IRS his catalog was worth about $82 million, but the IRS put the figure at approximately $163 million, nearly double the value. Both parties dispute how much Prince’s music rights were worth at the time of his death.
Michael Jackson's estate went through something similar earlier this year. A U.S. Tax Court ended up siding with the singer's estate in May 2021, ruling that Jackson’s image and likeness were worth about $157 million less than the IRS' estimate.
U.S. Tax Court Senior Judge Mark V. Holmes, who previously handled the Jackson case, will also preside over the Prince hearings, which will be held virtually.
Prince released 39 albums over the course of his career, beginning with 1978's For You. Several of his albums topped the Billboard 200, including 1989's Batman and 1984's Purple Rain, the latter of which sold over 13 million copies in the United States. He scored numerous No. 1 hits on the Billboard Hot 100 as well, including Purple Rain singles "When Doves Cry" and "Let's Go Crazy," as well as 1986's "Kiss," 1989's "Batdance" and 1991's "Cream."
The IRS' valuation of Prince's catalog would increase his estate's tax bill by over $38 million, including $6.4 million as an "accuracy-related penalty" due to the "substantial" difference. Comerica Bank & Trust serves as the executor of the estate and filed suit against the IRS in summer 2020.
Prince died of an accidental fentanyl overdose at his Paisley Park home on April 21, 2016 at the age of 57.