Roz Marketing - March/April 2021





11271 Ventura Blvd. #612 Studio City, CA 91604 Inside This Issue pg 1 ∙

The Secrets to Conquering Overwhelm

Food for Thought

pg 2 ∙ pg 3 ∙ pg 4 ∙ pg 5 ∙

From the Practice Corner

Member Spotlight

Save the Date for Our Virtual 6th Annual Tax Resolution Success Summit

Shout Outs!

pg 6 ∙ pg 8 ∙

Terror Tale of the Month

IRS Terror Tale of the Month The IRS Battles a Bank Over the Worth of Prince’s Estate

Photo credit: Yves Lorson

When international rock star Prince died of a fentanyl overdose in 2016, his family was dismayed to discover that he’d passed without a will. A massive estate battle ensued. The tug of war between Prince’s six siblings and half-siblings was in the news for years, and now, the controversial estate is back in the headlines thanks to an announcement from the IRS. In January 2021, the IRS revealed that according to its calculations, Comerica Bank & Trust had undervalued Prince’s estate by a whopping $80 million. Comerica, the estate administrator, claimed Prince’s assets were worth $82.3 million, but the IRS says that, counting Prince’s music publishing and recording interests, it’s actually worth double that — $163.2 million to be exact.

The IRS is invested in this probate fight because if its calculations are right, then the estate owes an additional $32.4 million in federal taxes. On top of that, the agency wants Prince’s heirs to pay an additional $6.4 million as an “accuracy-related penalty” for Comerica’s mistake. But Comerica won’t back down. The bank sued the IRS in U.S. Tax Court, claiming that its original estimate was accurate and, as the Associated Press (AP) puts it, “the agency’s calculations are riddled with errors.”As we write this, Comerica’s trial request is pending. “What we have here is a classic battle of the experts — the estate’s experts and the IRS’s experts,”estate planning attorney Dennis Patrick told AP.

It’s unclear who will triumph in this case, but regardless of the outcome, it’s certainly a terror tale for Prince’s heirs. To resolve the dispute, they’ll likely have to shell out additional funds for court filings and legal fees and may even be stuck spending another five years in court. If Prince were alive he might be singing the blues instead of rock ‘n’ roll.

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