Beyoncé Battling $2.7 Million Tax Bill From IRS
Written by djfrosty on April 28, 2023
Source: Timothy Norris / Getty
Much like the song from her latest album, Beyoncé is heated over the Internal Revenue Service which claims she owes them $2.7 million in unpaid taxes.
According to reports, the singer filed a petition on April 17th protesting a decision by the I.R.S. to serve her with a tax bill demanding that she pay $2.7 million dollars in conjunction with a Notice of Deficiency back in January 2018 over the matter. The documents of Beyoncé’s motion include her stating that the I.R.S. committed multiple errors in reviewing her taxes from 2018 and from 2019. The full detail from the agency’s billing claims that the singer owes $805,850 in taxes and $161,170 in penalties for 2018. For 2019, the estimation was $1,442,747 in taxes plus $288,549.40. The interest added to those figures totals $2.7 million.
“We are working with the IRS and anticipate that the matter will be resolved shortly,” said Michael C. Cohen, an attorney representing Beyonce’s legal team. The singer notes in the petition that if there were discrepancies that occurred, she should not pay the penalties because she “acted in good faith”. The petition also alleges that the I.R.S. disallowed multiple deductions related to her business income, including utilities, insurance, management fees, legal services, and professional services for both years. An example presented by the lawyers in the petition state that the I.R.S. disallowed a charity contribution of $868,766 the singer claimed as an itemized deduction. The charity itself was unnamed.
Beyoncé has donated to numerous causes in the past and present. She created the BeyGood Foundation in 2013 to assist communities with mental health, education, and disaster relief among other issues. She and her husband, Jay-Z, have also jointly made charitable contributions. The most publicized in recent times was tied to their appearance in a new campaign for Tiffany in 2021, where a pledge of $2 million was made to Historically Black Colleges & Universities.
The news comes as the 41-year-old is on the verge of embarking on a highly anticipated world tour for her latest album, Renaissance. The tour is already projected to earn $275 million, which will add to her considerable net worth of $500 million.
Beyoncé also counts her Ivy Park streetwear brand in her portfolio, which she fully acquired in 2018 through her Parkwood Entertainment company.