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Pop Star Prince’s Estate Fight With IRS Set for March Trial

Nov. 5, 2021, 6:40 PM

A trial in the Prince estate’s tax battle with the IRS is set to start on March 21, 2022.

The musical star’s estate originally told the IRS it was worth about $82 million, but the agency has pegged the real figure at about $163 million. A major area of dispute for the parties is how much Prince’s music rights were worth at the time of his death.

Prince died of an accidental fentanyl overdose in 2016 at the age of 57. His estate’s case is unfolding in the wake of a U.S. Tax Court decision on the value of Michael Jackson’s estate, where the court ruled that Jackson’s image and likeness were worth about $157 million less than what the IRS estimated.

U.S. Tax Court Senior Judge Mark V. Holmes, who handled the Jackson estate case, will be presiding over the Prince estate proceedings, which a Friday notice from the Tax Court indicated will be held remotely.

The case is Estate of Prince R. Nelson v. Commissioner, T.C., No. 11442-20, notice setting case for trial 11/5/21.

To contact the reporter on this story: Aysha Bagchi in Washington at abagchi@bloombergtax.com

To contact the editors responsible for this story: Patrick Ambrosio at pambrosio@bloombergtax.com; Kathy Larsen at klarsen@bloombergtax.com