Beyoncé may have to contend with the IRS for a while as they have ordered her to pay a substantial amount in taxes.
According to OK! Magazine, the IRS has reaffirmed its initial assessment of the Queen’s previous tax bill, stating that there were ‘no errors’ in their evaluation.
The IRS is seeking $805,850 in taxes and $161,170 in penalties for the 2018 tax year, along with $1,442,747 in additional taxes and $288,549.40 in penalties for 2019. Furthermore, the IRS has promised to add compounded interest to Beyoncé’s tax debt until it is completely settled.
However, since the singer plans to continue challenging the ruling, she will not have to pay anything until the final judgment from the federal court is issued.
In April, Beyoncé initially filed her redetermination petition against the IRS. As part of her lawsuit, she alleged that the IRS had miscalculated by disallowing millions of dollars in deductions, including those related to taxes, depreciation, management fees, utilities, and other expenses.
According to Queen Bey, the IRS should not disallow the “$868,766 attributed to a charitable contribution carryover reported in 2018.”
The petition also stated: “Based on information and belief, Respondent erred in determining that Qualified Business Income Deductions of $3,581 reported in 2018 and $14 reported in 2019 should be disallowed.”
Beyoncé also argued that the IRS was mistaken when it found that she failed to report $1,449 in royalty income for 2018.
She also challenged the IRS penalties for accuracy-related errors. According to IRS Code Section 6622, these penalties amount to 20 percent of the tax underpayment.
In both tax returns, Beyoncé asserted that she properly reported her royalty income and all deductions. She argued that due to her ‘reasonable and good faith conduct,’ accuracy-related penalties should not be applied if there are any additional taxes owed.