Aretha Franklin’s estate settles $7.8 million in back taxes with the IRS
According to multiple reports Aretha Franklin‘s estate settled its $7.8 million tax debt with the IRS.
Back in 2018, The Detroit News reported that Franklin owed more than $6.3 million in back taxes when she died. However, according to Franklin’s estate, at least $3 million had already been paid before her death.
2018 Probate Agent David Bennett said, “The IRS has filed its proof of claim in the probate hearing…this is not a liquidated claim and is being contested by the probate.” The vast majority of Ms. Franklin’s personal 1040 tax obligations were paid before her death – something she wished she had. The property is working diligently to resolve any remaining issues.”
READ ALSO: Jennifer Hudson On Rival Aretha Franklin Project: ‘If It’s Not A Movie, It’s Nothing’
According to the Detroit FreePress“In a major breakthrough, Franklin’s four sons and the IRS reached a settlement that would expedite payment of the remaining tax bill — while also giving the sons an infusion of cash from their late mother’s fortune.” Franklin’s sons have reportedly since their deaths did not receive any money from the estate due to the problem with the IRS.
According to a petition filed Feb. 19 in Oakland County Probate Court, “The proposed agreement involves an immediate payment of $800,000 to the IRS, although the estate continues to dispute the total amount owed.”
According to the IRS, the current balance is $4.75 million. A final IRS bill is determined “by agreement or litigation.”
The deal now provides that “45% of quarterly earnings go to the existing IRS balance.” Fifteen percent of the proceeds will go towards administering the estate, while another 40% will be “sent to an escrow account to settle future taxes on the newly generated income”.
Also under the deal, each of Franklin’s sons (Clarence, Edward, teddy and Kecalf) will receive $50,000 in immediate payments. Corresponding The Detroit Free Press, The order “must be approved by Judge Jennifer Callaghan to be effective.”
Franklin’s sons may have settled the tax issues with the estate, but have recently spoken out against MGM‘s new Franklin biopic, respect.
When theGrio‘s Dawn Only As previously reported, Franklin’s son, Kecalf, wrote on Facebook, “How can you make a film about a person and not talk to that person’s sons or grandchildren about important information? If you’re a “real” fan of my moms, please don’t support this. Ask yourself… would you want that to be done to you?”
READ ALSO: The Release Dates Of “Respect” And “Genius: Aretha” Have Been Pushed Up Due To The Coronavirus
While the family opposes the film, they are fine with it Jennifer Hudson portrays the Queen of Soul. Kecalf wrote: “SIDE: The ‘ONLY’ person my mom preferred for the film was JENNIFER HUDSON. Period. Everything else happens against our will.”
respect is scheduled for release in August 2021.
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