The IRS says Prince’s estate owes another $32.4 million in taxes after executors undervalued the worth of the late guitarist’s estate, based on a report by the Associated Press.
According to documents reviewed by the Star Tribune in Minneapolis on Saturday, The IRS valued Prince’s estate at $163.2 million, whereas the initial valuation submitted by Comerica Bank & Trust, which administered the estate, was just $82.3 million. The extra $32.4 million roughly doubles the tax bill that was originally given based on Comerica’s valuation.
Prince, who suffered a fatal fentanyl overdose in April 2016, died without a will, and this latest wrinkle sets up another settlement dispute that involves conflicts over Prince’s music publishing and recording interests.
Documents also show that the IRS applied an “accuracy-related penalty” of $6.4 million for the “substantial” undervaluation of the rock star’s assets.
Valuations of Prince’s net worth have varied drastically, between $100 million to $300 million, and his six sibling heirs have grown restless as court probate proceedings have dragged out and other fees have been paid to lawyers and consultants. His heirs range from the ages 50 to 80, and one of Prince’s brothers died in 2019.
According to the AP, Comerica and its Minneapolis lawyers stand by their valuations and in fact sued the IRS over the summer in U.S. Tax Court claiming that the agency’s own calculations have errors.
For the record: A previous version of this story incorrectly calculated the difference in percentage.