Beyonce Wins Her Battle with the IRS

Three years ago pop star Beyoncé was hit with a $2.7 million delinquency notice from the IRS [click here if you missed that].

The IRS backs down...

From Tax Notes

Pop superstar Beyoncé and the IRS agree that she owes $709.20 in tax and penalties instead of the nearly $2.7 million that the agency had asserted in a deficiency notice, according to a stipulated decision approved by the Tax Court.

The decision document in Knowles-Carter v. Commissioner, signed December 11 by Tax Court Judge Maurice B. Foley, states that Beyoncé has a tax deficiency of $591 and is liable for a section 6662(a) penalty of $118.20 for tax year 2018 and that she has no deficiency or penalty liability for tax year 2019.

Compared with the IRS’s deficiency notice, which asserted that Beyoncé owed $2,698,316.40 in tax and penalties for tax years 2018 and 2019, the stipulated decision “certainly is a taxpayer-friendly resolution,” Justin Miller of Evercore Wealth Management LLC told Tax Notes.