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Prince's estate is in trouble with the IRS for allegedly undervaluing its assets by 50%, according to a new report.
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The seven-time Grammy winner, best known for hits like "Purple Rain" and "When Doves Cry," was 57 years old when he died of an accidental fentanyl overdose on April 21, 2016, without leaving a will.
A new report from The Star Tribune claims the IRS believes Prince's estate is worth double the amount submitted by the estate's administrator, Comerica Bank & Trust.
The outlet, citing documents filed in U.S. Tax Court, reports that the IRS has valued the legendary pop singer's estate at $163.2 million, which is significantly higher than Comerica's $82.3 valuation.
PRINCE WRONGFUL DEATH CASE DISMISSED; $200M ESTATE CASE CONTINUES In this Oct. 14, 2010 file photo, musician Prince holds a news conference at The Apollo Theater announcing his “Welcome 2 America” tour in New York. The pop icon died at the age of 57 in 2016, leaving no will. (AP Photo/Peter Kramer)
Additionally, the documents reportedly show the IRS claims the estate owes $32.4 million in federal taxes. The IRS has also reportedly tacked on a $6.4 million "accuracy-related penalty" due to the undervaluation of assets.
Reps for Prince's estate and the law firm representing Comerica Bank & Trust did not immediately respond to FOX Business' requests for comment. However, according to the StarTribune, Comerica's lawyers at Fredrikson & Byron in the singer's home state in Minnesota have maintained "their estate valuations are solid."
Meanwhile, in January it was reported that the wrongful death lawsuit filed by Prince's family members had been quietly dismissed, suggesting family members have reached settlements with defendants including the Minnesota doctor who saw Prince in the weeks before his death and the Illinois hospital that treated him for an opioid overdose seven days before he died.
MARTIN LUTHER KING JR.'S NET WORTH: HISTORIC ITEMS ARE WORTH MILLIONS
The dismissals largely close one legal chapter in the superstar's legacy, even as efforts drag on to value and dispose of his estate once pegged at around $200 million.
Prince’s heirs filed a wrongful death lawsuit against a slew of defendants in April 2018, alleging they had the duty and opportunity to diagnose and treat Prince's addiction and prevent his death but failed to do so.
But as early as last summer, plaintiffs began dismissing defendants.
Claims against Dr. Michael Schulenberg — a doctor who treated Prince in the weeks before his death — were permanently dismissed in November, along with claims against Schulenberg’s former employer. Both sides agreed to the dismissals.
GET FOX BUSINESS ON THE GO BY CLICKING HERE In documents reportedly on file at the U.S. Tax Court, the IRS claims Prince’s estate owes $32.4 million in federal taxes. (AP)
Claims against Walgreens, which filled prescriptions for Prince, and Trinity Medical Center, the Illinois hospital where Prince was treated for an opioid overdose a week before he died, were also permanently dismissed in August by agreement.
Attorneys in the case either declined comment or did not return messages to the Associated Press. But Henry Blair, a professor at Mitchell Hamline School of Law in St. Paul, Minnesota, said the dismissal language — with agreement by defendants and plaintiffs — leaves him “99.99% sure those are settlements.”
A medical negligence claim against Howard Kornfeld, a California addiction specialist who was contacted by Prince’s associates before he died, was dismissed by a judge in September, but remains alive on appeal. Prince’s family says Kornfeld had a duty to advise Prince’s associates that he should be immediately admitted for treatment. But the judge found no evidence that Kornfeld ever communicated with Prince or that a doctor-patient relationship was established.
An autopsy found Prince overdosed on fentanyl. Authorities said it was likely Prince didn't know he was taking the synthetic opioid that is 50 times more powerful than heroin.
The Associated Press contributed to this report.
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