Can Beyoncé work it out with the IRS? Just as taxpayers throughout the United States rushed to file their taxes by the April 18 deadline, Beyoncé was busy filing a petition with the U.S. Tax Court for an estimated $2.7 million.
According to court documents obtained by RadarOnline, Beyoncé requested the court to review taxes totaling $805,000 and associated penalties of $161,000 for 2018. The taxes in question were filed by Beyoncé as a sole taxpayer. Her husband, Jay-Z, was not included in the petition. Beyoncé is represented by Michael C. Cohen of De Castro, West, Chodorow, Mendler & Glickfiled, Inc.
Beyoncé believes in the power of multiple streams of income. The singer/songwriter, entrepreneur, and philanthropist has a net worth of $500 million. With Jay-Z, however, Beyoncé has a combined net worth of $1.8 billion.
She is currently one of the highest-paid entertainers and has won 32 Grammy Awards, giving her the record for the most wins ever. Beyoncé started as part of Destiny’s Child before going solo in 2003 with the release, “Dangerously In Love.” Since then, she has released eight other albums. She has also starred in films such as “Dreamgirls,” and “Cadillac Records.”
She’s embarking on her much-touted “Renaissance” worldwide tour on May 10.
Endorsement deals with Pepsi, L’Oreal, American Express, and Samsung have helped Beyonce grow her wealth. At the same time, partnerships with brands such as Coty and Adidas have allowed Beyoncé to share her style and ingenuity. And although her partnership with Adidas has ended, she still possesses ownership of the lifestyle brand, Ivy Park, and is now working with Balmain.
According to court documents, the Notice of Deficiency argues that $805,000 along with $161,170 penalty is owed for 2018. An additional $1,442,747 in taxes and a penalty of $288,548.49 is owed for 2019. Interest is currently accruing on both amounts.
Beyoncé is disputing the claims of deficiency, arguing that the IRS made a mistake in not allowing her to write off several million dollars in tax deductions — especially since $868,7666 was earmarked for a charitable donation that was a carryover in 2018.
According to court documents obtained by Forbes, “The IRS assessed section 6662(a) penalties — accuracy-related penalties. … By statute, those penalties are 20 percent of the amount of the underpayment of tax.”
Beyoncé, however, is arguing that if any tax payment is due, it should be void of penalties because she “has acted reasonably and in good faith.”