The Whitney Houston estate has reached an agreement with the IRS to pay $2 million.
This is a huge victory for the late singer’s estate, who was originally told they owed $11 million.
According to court documents obtained by The Blast, the estate filed documents on December 26 agreeing to pay the amount of $2,275,366.
Following Whitney’s death, the IRS determined the estate had underreported the singer’s royalties, residuals and value of her image by $22.6 million. The IRS alleged that meant the estate owed them $11 million dollars.
Whitney’s estate claimed the IRS was wrong in their value determination. They alleged the values they determined for her music royalties, digital performance royalties, motion picture and TV residuals, and publicity rights (which they valued at $11.7 million) were all overvalued by the IRS, and claimed their tax returns were accurate.
The parties were scheduled to be in court next month, but since they’ve come to an agreement, that won’t happen.
Pat Houston, is the executor of the late singer’s estate.