Victories for Michael Jackson: courts dismiss Finding Neverland accusers Wade Robson and James Safechuck, and finally hands multimillion dollar tax win to MJ’s heirs

May 7 , 2021

Michael Jackson’s estate has won two important lawsuits which could help redefine his image for years to come. Photo: AP Photo

The IRS valued three of Jackson’s assets at US$482 million at the time of his death – four times the court’s new valuation, a huge tax windfall for his heirs

Coupled with the dismissal of the second set of sexual abuse charges that emerged from Finding Neverland, it marks a new start for the King of Pop’s estate

Michael Jackson fans, followers and heirs celebrated this week when a US tax court handed a major victory to the late pop star’s estate following a years-long battle, finding that the IRS wildly inflated the value of Jackson’s assets and image, leading to an estate tax bill for his heirs that was far too high.

The IRS had put the value of three disputed aspects of Jackson’s worth at the time of his 2009 death at about US$482 million. In his decision, issued Monday, Judge Mark Holmes put that figure at US$111 million, far closer to the estate’s own estimates.

Michael Jackson arrives at the Santa Barbara County Courthouse in 2005. Photo: Santa Maria Times via AP

The estate’s executors said it was a huge and unambiguous victory for Jackson’s children.

“We’re pleased,” coexecutor John Branca told Associated Press on Tuesday. “We always try to do the right thing. We tried from the beginning to follow the IRS rules and regulations, and relied on the best experts possible. It’s unfortunate that we were forced to litigate to protect ourselves.”

Fans place tributes to the late pop star Michael Jackson outside his final resting place at Forest Lawn Cemetery. Photo: Invision/AP

The judge mostly disagreed with the IRS over the value of Jackson’s image and likeness. While the IRS put it at US$161 million, Holmes ruled it was just US$4.15 million. He noted that despite Jackson’s acquittal on all counts at his 2005 trial for child molestation, the allegations continued to dog him, and while Jackson was selling out dates for a planned world tour when he died, he could not find a sponsor or merchandise partner.

“The fact that he earned not a penny from his image and likeness in 2006, 2007 or 2008 shows the effect those allegations had, and continued to have, until his death,” Holmes wrote in the sprawling 271-page decision that tracks Jackson’s fame and finances through most of his life.

The tax fight had led to a bill of about US$700 million after an audit of the 2013 taxes on the estate, whose heirs are Jackson’s mother and three children, about US$200 million of it a penalty for underpaying.