Beyoncé has filed a petition to challenge the Internal Revenue Service (IRS) in the US Tax Court after being slapped with a tax bill of almost $2.7 million for 2018 and 2019. According to Forbes, the IRS assessed that the singer owed an additional $805,850 in taxes and $161,170 in penalties for 2018, and $1,442,747 in additional taxes and $288,549.40 in penalties for 2019.
Beyoncé disputed the tax bill and accused the IRS of disallowing millions of dollars in deductions for insurance, management fees, legal and professional services, utilities, taxes, depreciation, and other expenses. She also contested the accuracy-related penalties that the IRS assessed, which are calculated at 20% of the underpayment of tax under IRS Code Section 6622, arguing that she had acted reasonably and in good faith.
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The singer’s petition stated that the IRS was wrong in determining that her qualified business income deductions in 2018 and 2019 should be disallowed. She also claimed that the IRS had erred in disallowing the charitable contribution carryover reported in 2018 and in noting that she had failed to report $1,449 in royalty income in 2018.
However, the hitmaker insisted that she properly reported her 2018 royalty income as well as all the deductions cited in both returns.
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Forbes reports that most Tax Court cases are settled by agreement without going to trial. However, if a matter goes to trial, it’s usually a relatively quiet affair in front of a single judge.
Beyoncé’s earnings for 2018 and 2019 included headlining the Coachella Valley Music Festival, releasing her joint album “Everything Is Love” with her husband Jay-Z, embarking on their second stadium tour together, the “On The Run II” Tour, and making a lucrative deal with Netflix for her concert film “Homecoming,” released “Homecoming: The Live Album,” and voiced Nala in Disney’s “The Lion King.”
