The Minneapolis Star Tribune reports that the Internal Revenue Service and Prince’s estate’s administrator, Comerica Bank & Trust, agreed to value Prince’s estate $156.4 million, a figure that the artist’s heirs have also accepted. The valuation dwarfs Comerica’s earlier $82.3 million appraisal. The Internal Revenue Service in 2020 had valued the estate at $163.2 million.
The Internal Revenue Service and others have had to step in because Prince did not leave a will. He died of a fentanyl overdose in 2016.
As part of the agreement, the IRS dropped a $6.4 million “accuracy-related penalty” it had levied on Prince’s estate. The Minnesota Department of Revenue, which agreed on the estate’s valuation, also has dropped an accuracy penalty, the filing said.
Taxes on Prince’s fortune will run into the tens of millions of dollars.
The estate for the most part will be almost evenly divided between a well-funded New York music company — Primary Wave — and the three oldest of the music icon’s six heirs or their families.