Beyoncé, who has been basking in the success of her eighth studio album, Cowboy Carter, is now facing a legal battle. The court postponed Beyoncé’s tax trial for the staggering sum of nearly $3 million.
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Per RadarOnline, the IRS issued a Notice of Deficiency to the renowned “16 Carriages” singer in January 2023. The notice claimed that Beyoncé had not made proper payments on two tax returns, resulting in a debt of $2.7 million, including taxes, penalties, and interest. The IRS alleges she owes $805,000 in taxes and $161,000 in penalties for 2018, $1.4 million in taxes, and $288,00 in penalties for 2019.
Challenging the IRS’s claims, the mother of three filed a petition in April 2023 with the U.S. Tax Courts, denying any debt to the IRS. She argued that the reported figures were incorrect and that she was unfairly denied deductions amounting to millions of dollars. The singer stated that the IRS denied her deduction of nearly $870,000 in charitable donations and $473,000 in legal fees.
According to RadarOnline, Queen Bey is not willing to pay the penalty fees. She reportedly believes the penalty fees shouldn’t apply to her because she meant no harm and “acted reasonably and in good faith.”
A representative from the IRS denied each allegation in the filed petition and defended the hefty tax bill. They are also asking the judge to deny her petition. Seemingly, both parties are unwilling to back down, causing the case to go to trial.
Beyoncé’s Tax Trial Delayed
Beyoncé’s day in court was scheduled for May 2024 but has recently been delayed. The 42-year-old filed a motion for continuance on April 2, 2024. The IRS agreed to honor the motion. Her legal team did not give a reason for filing the continuance. The case has no new start date yet and longer appears on the court calendar.
In court documents, Judge Maurice B. Foley stated, “This case is stricken from the trial session. The undersigned retains jurisdiction. The parties shall file a status report or proposed stipulated decision by 07/05/24.”
If the two parties cannot reach a decision by July 2024, this case will go to trial in the U.S. Tax Courts. Both sides will have to convince the judge, as a jury will not be present.
Beyoncé, represented by Michael C. Cohen, has not made a public statement regarding her tax woes. RadarOnline also reported that Jay-Z is not indicated in the case because they do not file joint taxes.
If the singer cannot prove her case, the court will order her to pay the $2.7 million tab. The singer reportedly racked in over $500 million during her Renaissance World Tour, and fans already anticipate an upcoming summer tour of her new country-esque album, Cowboy Carter. Nevertheless, if the court orders Bey to pay, the tax bill won’t put a dent in her billionaire status
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