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Michael Jackson's Estate Owes $702 Million in Taxes

The late Michael Jackson reportedly owes $702 million in estate taxes.

The Internal Revenue Service has charged the late pop legend for owing $702 million in taxes - $505.1 million in taxes and $196.9 million in penalties.

The IRS, a U.S. tax-collecting agency, has claimed a disparity between "how much Jackson's legacy was worth versus what the IRS determined was its taxable value."

In 2009, the Jackson estates had a $7 million taxable value. Moreover, Jackson's image and likeness were valued at $434 million as was taxable for $2,105. His largest taxable possession was the MJ/ATV Publishing Trust valued at $469 million.

According to reports, “Under Tax Court rules, the Jackson estate will not need to pay any taxes or penalties unless the court rules in favor of the IRS.”

The 51-year-old King of Pop, who had a net worth of $600 million, died on June 25, 2009 due to overdose of the surgical anesthetic propofol. His mother Katherine and three children (Prince, Pairs and Blanket) as well as his charities were the recipients of his estates.

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Michael Jackson's Estate Owes $702 Million in Taxes