Pop icon Beyoncé Knowles-Carter filed a petition in the U.S. Tax Court disputing $2.7 million in tax and penalties, Forbes reports. The petition, filed on April 17, 2023, asks the court to reconsider additional tax and penalties assessed by the IRS in a January 18, 2023, Notice of Deficiency.
According to the notice, additional taxes of $805,850 and penalties of $161,170 ended up assessed against the singer in 2018. In her petition, Beyoncé disputed the $868,766 attributable to a charitable contribution carryover reported in 2018 and argued that the IRS was incorrect when it found she failed to report $1,449 in royalty income for the same year. She also stated that the IRS made errors in determining the Qualified Business Income Deductions of $3,581 reported in 2018 and $14 reported in 2019.
Beyoncé, as the sole taxpayer, filed the petition without including her husband Jay-Z. The singer’s net worth is $450 million as of Forbes's last assessment in June 2022, and her Renaissance tour should bring in $275 million or more.
Beyoncé’s legal team expressed confidence that there were errors in the assessment and requested that the penalties get waived since she “has acted reasonably and in good faith.” The petition demonstrates that the singer is willing to fight the tax bill in court, which highlights the seriousness of the matter.
The IRS’s decision to assess additional taxes and penalties against Beyoncé indicates that even the wealthiest individuals are not immune to the scrutiny of the tax authorities. However, the case also shows that taxpayers have the right to contest such assessments if they believe that there are errors. Expect tons of eyes watching this case, as it could have significant implications for other high-net-worth individuals who find themselves in similar situations.
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