By Daily Mail Reporter It's a case that, according to the IRS, is very black and white. The Michael Jackson Estate is accused of cheating taxpayers out of millions of dollars by allegedly undervaluing the wealth of the late pop great - and has been hit with a penalty of more than $702 million. New legal documents filed with the U.S. Tax Court in Washington, which were obtained by the L.A. Times, say that after Jackson died in June 2009, the executors of his estate valued the singers net worth at around $7 million. However the IRS are disputing the figure and claim MJ is actually worth $1.125 billion.
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Legal documents show executors of Michael Jackson's estate valued the singers net worth at $7 million after he died in June 2009
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The IRS now says the net worth was actually $1.125 billion
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The estate has subsequently been hit with $505 million in taxes and an additional $197 million for 'gross valuation misstatement penalty'
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Among the disputed values, the estate said a trust that holds interest from some of Jackson's music and most of the Beatles catalog was worth $0
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The IRS said it was worth $469 million
This would have had a major effect on endorsement deals and whether companies would have waned to be aligned with the @placeholder brand.