Beyoncé Disputes IRS Claim of $2.7 Million in Taxes, Says She Has Acted in Good Faith
Beyoncé is a household name, known worldwide for her unparalleled talent and contributions to music and philanthropy. However, the superstar is currently battling a $2.7 million tax bill from the Internal Revenue Service (IRS).
According to court documents obtained by Page Six, Beyoncé has filed a petition in the United States Tax Court, arguing that the IRS made several errors in their determinations of her 2018 and 2019 tax returns. Specifically, the petition disputes the disallowance of several business income deductions, utilities, insurance, management fees, legal services, and professional services for those years.
Furthermore, Beyoncé's attorney disputes the disallowance of an $868,766 charity contribution as an itemized deduction in 2018. While it is unclear which philanthropic cause this pertains to, supporting and donating money to causes has been something Beyoncé is well known for. She has been the founder of the BeyGood Foundation since 2013 which assists with education, disaster relief, and other issues. She has also supported numerous other charities throughout her career.
The petition states that if the Crazy In Love singer is found to owe any tax deficiency payments - which occur when there is a discrepancy between the amount reported to the IRS and the calculated figure - the penalty should not be applicable because she has acted in good faith and with reasonable cause.
The Notice of Deficiency spurred the petition for a re-evaluation of the music icon's tax liability. In the United States, taxpayers have a 90-day window from the date of the notice to file a petition and contest the original assessment, as per The Daily Mail. Forbes reports that a trial date will be set as soon as possible, although most cases are resolved without going to trial.
The singer's petition challenges not only the $868,766 tied to a charitable contribution carryover from 2018 but also the penalties imposed on her. Beyoncé's legal team argues that she acted reasonably and in good faith, and as such, the penalties should not apply. The penalties amount to 20% of the underpaid tax, and the singer reportedly owes interest on the outstanding balance.
The petition lists Beyoncé as the sole taxpayer, with no mention of her husband, Sean Carter, who is known by his stage name, Jay Z.
According to the Notice of Deficiency included in the court documents, the IRS claims Beyoncé owes $805,850 for 2018 and $1,442,747 for 2019, plus an additional $449,719.40 in combined penalties for those years. Beyoncé's attorney, Michael C. Cohen, told Page Six that they are collaborating with the IRS and expect to resolve the issue soon.
Although the sum of $2.7 million may appear significant, it represents only a fraction of Beyoncé's reputed net worth of $500 million. The singer has been a household name for several decades and has amassed wealth from her music career, having sold more than 200 million records globally and sold out numerous stadiums and arenas worldwide.
