‘Bills, Bills Bills’: IRS Fighting Beyonce’s Attempt to Escape $2.7 Million Tab, Government Demands Singer Pay Up
Aug. 30 2023, Published 2:00 p.m. ET
The IRS fired back at Beyonce Knowles’ claim the government hit her with an improper tax bill — claiming no mistakes were made on the assessment, RadarOnline.com has learned.
According to court documents obtained by RadarOnline.com, the Internal Revenue Service asked that Beyoncé’s petition, filed in U.S. Tax Court on April 17, be denied.
In her petition, the entertainer disputed a $2.7 million bill from the IRS over alleged taxes owed and penalties.
The singer said the IRS notified her on January 18, 2023 — via a Notice of Deficiency — that she failed to properly pay on two tax returns.
Beyoncé said the IRS demanded an additional $805,850 in taxes and $161,170 in penalties for the year 2018. In addition, she said the agency wanted $1,442,747 in additional taxes and $288,549.40 in penalties for 2019.
The singer said the IRS plans to add interest on the debt until paid in full.
In the filing, the entertainer said the IRS’ numbers were inaccurate. She claimed the government didn’t allow her to claim millions of dollars’ worth in deductions.
She claimed the IRS did allow her to deduct legal fees in the amount of $473k and charitable contributions totaling $868k. In addition, she claimed the IRS erred in determining that “Depreciation of $3,326,103 reported ”on her 2019 tax returns would not be allowed.
The petition noted that the IRS planned to add on a substantial amount of penalties — up to 20% of the underpayment of tax. Beyoncé argued the penalties should not be applied because she “acted reasonably and in good faith.”
In the IRS’ answer, obtained by RadarOnline.com, the government said it denied “generally each and every allegation in the petition.”
Further, it denied it erred in disallowing certain dedications and charitable contributions by Beyoncé. The IRS stood by the $2.7 million tax bill.
The lawyer representing the IRS asked that the petition be denied, and the original assessment be approved.
Forbes, who broke the story on Beyonce’s initial petition, said the singer filed her taxes individually and without her husband Jay-Z.
Beyoncé will not have to pay anything on the $2.7 million tax bill until the case is resolved.
Regardless of the outcome, Billionaire Beyoncé will be fine. Billboard reported her Renaissance World Tour could pull in $500 million by the end.