(Bloomberg) --The estate of Michael Jackson looks to have escaped a possibly hefty penalty for allegedly undervaluing the late singer’s assets.
A U.S. Tax Court judge denied the Internal Revenue Service’s bid to provide additional evidence in a case that was tried in Los Angeles in February. Because the agency didn’t show that it complied with certain procedural requirements, it’s barred from seeking as much as 40 percent of the allegedly understated tax in penalties.
“What happens if a party with the burden of production on an issue fails to introduce sufficient evidence at trial to meet that burden?” Judge Mark Holmes said in his Dec. 20 order. “Well, he loses.”
The executors of Jackson’s estate, lawyer John Branca and former music industry executive John McClain, have been busy monetizing the legacy of the singer, who died in 2009, for the benefit of his children.