Beyoncé Allegedly Owes Millions In Taxes, Says IRS; Singer Says It's An Error

Beyonce, shown here in 2019 at the world premiere of Disney's "The Lion King," is the top Grammys nominee AFP / Robyn Beck

KEY POINTS

The Internal Revenue Service (IRS) issued a notice of deficiency addressed to Beyoncé in January
The notice stated that she owes over a million in additional taxes and penalties since 2018
Beyoncé filed a petition before the U.S. Tax Court, contending that the IRS failed to credit millions in deductions

Beyoncé has filed a petition before the U.S. Tax Court, contesting millions of unpaid additional taxes and penalties since 2018 and asking for reconsideration for the debt assessed by the Internal Revenue Service (IRS) due to an error in the system.

The IRS issued a notice of deficiency earlier this year, stating that the 41-year-old Grammy winner owes $805,850 in additional tax and a $161,170 penalty for 2018, and a total of $1,442,747 in additional tax and a $288,549.40 penalty for 2019, with also an interest due, according to court documents obtained by Forbes.

Beyoncé — real name Beyoncé Giselle Knowles-Carter — contended that the IRS erred to account for millions of dollars worth of deductions, including what she attributed to a charitable contribution carryover back in 2018.

She also disputed that because she "acted reasonably and in good faith," she was no longer required to pay the 20% of penalties from the underpayment of tax if any tax were indeed due.

The "Love On Top" singer filed the tax court petition as the sole taxpayer, excluding her husband of 14 years, Sean Carter — popularly known as multi-billionaire rapper Jay-Z, per Forbes. The outlet said the independent filing was not "unusual" for married high-earning taxpayers.

Since filing the petition earlier this month, Beyoncé will not be required to pay the underlying tax until the case is concluded. It will also be scheduled for a trial soon, where the singer will be represented by attorney Michael C. Cohen of De Castro, West, Chodorow, Mendler & Glickfeld, Inc.

The superstar, slated to embark on her highly anticipated "Renaissance World Tour" later this month across different cities in the U.S. and Europe, is one of the highest-paid celebrities in the world. She currently has an estimated net worth of $500 million, according to Celebrity Net Worth.

She earned most of her fortune from music royalties, streams, world tours and endorsement deals with famous brands, such as Samsung, Ford, DirectTV, Adidas and Uber. She and her husband also own a $26 million Pond House in the Hamptons, an $88 million Bel Air mansion and a $4 million private island in the Bahamas.

Jay-Z reportedly has an estimated fortune of $2.5 billion separately, making him the first billionaire rapper in history. The couple now has a combined net worth of $3 billion.