Business

Beyoncé takes on the IRS over $2.7 million tax liability

Beyoncé is challenging the Internal Revenue Service in U.S. Tax Court.

The 41-year-old singer filed a petition seeking a redetermination of an almost $2.7 million tax liability imposed by the IRS in Notice of Deficiency for the years 2018 and 2019, according to Forbes.

For the taxable year 2018, the IRS assessed that the “Lemonade” hitmaker owed an additional $805,850.00 in taxes and $161,170 in penalties, per the Notice of Deficiency dated Jan. 18. The bureau also determined that $1,442,747.00 in additional taxes and $288,549.40 in penalties was due for the year 2019. The IRS charged interest for both years.

beyonce hand on hip at lion king premiere

Beyoncé is disputing a nearly $2.7 tax liability imposed by the IRS. ( David M. Benett/Dave Benett/WireImage / Getty Images)

In her petition, Beyoncé alleged that the IRS erred by disallowing millions of dollars in deductions for insurance, management fees, legal and professional services, utilities, taxes, depreciation and other expenses.

BEYONCÉ ANNOUNCES 2023 ‘RENAISSANCE’ WORLD TOUR

The pop star disputed that “$868,766 attributable to a charitable contribution carryover reported in 2018 should be disallowed.”

In addition, the petition stated, “On information and belief, Respondent erred in determining that Qualified Business Income Deductions of $3,581 reported in 2018 and $14 reported in 2019 should be disallowed.”

Beyonce

The bureau assessed that the singer owed additional taxes, penalties and interest for the years 2018 and 2019.  (Photo by Kevin Winter / Getty Images)

Beyoncé also claimed that the IRS was incorrect in finding that she failed to report $1,449 in royalty income in 2018.

The petition also contested the penalties, which the IRS assessed as accuracy-related penalties. The bureau calculates accuracy-related penalties at 20% of the portion of the underpayment of tax under IRS Code Section 6622.

Per the IRS website, the two most common accuracy-related tax penalties are negligence or disregard of the rules or regulations and substantial understatement of income tax.

CLICK HERE TO READ MORE ON FOX BUSINESS

beyonce performing at coachella

The hitmaker filed a petition contesting the taxes and penalties in U.S. Tax Court. (Kevin Winter/Getty Images for Coachella / Getty Images)

Beyoncé asserted that she properly reported her 2018 royalties income as well as all the deductions cited in both returns.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

The singer contended that if any additional tax liability is owed, the accuracy-related penalties should not be applicable since she “acted reasonably and in good faith.”

2018 was a profitable year for the songstress. She headlined the Coachella Valley Music Festival and released her joint album “Everything Is Love” with husband Jay-Z. The two also embarked on their second stadium tour together, the “On The Run II” Tour.

In 2019, Beyoncé made a lucrative deal with Netflix for her concert film “Homecoming,” released “Homecoming: The Live Album” and voiced Nala in Disney’s “The Lion King.”

Related posts

Inflation pushing next generation farmers out of the business: ‘Can’t believe what things cost’

Daily

Roku says it experienced second ‘credential stuffing’ incident

Daily

Inheritance tax ‘mistakes’ to watch out for as HMRC receipts hit £7.5bn | Personal Finance | Finance

Daily

Leave a Comment