Beyoncé challenges $2.7mn tax bill, claiming IRS made a mistake over charitable donations
Pop sensation Beyoncé is challenging the Internal Revenue Service in US tax court, seeking to reassess her tax $2.7mn tax liability for the years 2018 and 2019.
The Notice of Deficiency claims the singer, 41, owed an additional $805,850 in tax for the year 2018, and $1,442,747 for 2019, plus combined penalties of $449,719.40.
Beyoncé’s 17 April dispute claims the IRS was mistaken in disallowing millions of dollars’ in deductions, including over $850,000 in charity contributions in 2018.
With a net worth of around half a billion dollars, Beyoncé is one of the most successful recording artists of all time. Her husband Jay Z, who also has stakes in a number of successful business ventures, is also worth an estimated $2.5bn.
Beyoncé, pictured accepting the award for Best Dance/Electronic Music Album at the 65th Grammy Awards in LA in February, is one of the most successful artists of all time
Beyoncé accepts the award for best dance/electronic music album for “Renaissance” at the 65th annual Grammy Awards on Sunday, on 5 February, 2023, in Los Angeles
Beyoncé Knowles performs onstage during Coachella Valley Music And Arts Festival Weekend 1 at the Empire Polo Field on April 14, 2018 in Indio, California
The petition to re-evaluate the singer’s tax liability was brought about by the Notice of Deficiency.
Taxpayers within the US have 90 days from the date of the notice to file a petition to challenge the original assessment.
According to Forbes, a case will be scheduled for trial as soon as possible – though most are agreed without going to trial.
As well as the $868,766 attributable to a charitable contribution carryover from 2018, the singer contests penalties applied as she ‘has acted reasonably and in good faith’.
The penalties are set at 20% of the amount of underpaid tax, and interest is reportedly due to the amounts currently owed.
On the petition, Beyoncé is listed as the sole taxpayer, without husband Sean Carter, better known as singer Jay Z.
Among other causes, Beyoncé is behind the public charity foundation BeyGOOD.
The charity offers educational scholarships, advocating for internships and giving better access to resources for people to build small businesses in the US and overseas.
As well as helping students whose families cannot afford tuition fees, it helps current students prepare for permanent job placements.
Beyoncé also co-founded Chime for Change in 2013 with Salma Hayek, launched by Gucci, which has raised some $19mn to support projects pushing for gender equality around the world.
Her partner founded the Shawn Carter Foundation in 2003 to provide scholarship opportunities for disadvantaged young people.
After Hurricane Katrina, he pledged $1mn to the American Red Cross’ relief effort.
In 2006, he visited Africa and produced a documentary on the world water crisis.
Beyoncé with Jay Z on 6 October 2021 at the premiere of The Harder They Fall in London
Beyonce and Jay-Z paid $88 million in August 2017 for this stunning property in Bel Air
The Bel Air home features eight bedrooms, 11 bathrooms and four outdoor swimming pools
In 2018, Beyoncé released Everything Is Love with Jay Z, the debut studio album by the couple stylizing themselves as THE CARTERS.
The album was certified gold by the Recording Industry Association of America (RIAA).
In April 2018, the singer headlined Coachella in Indio, California, becoming the first Black woman to do so. The performance earned critical acclaim.
A year later, she had a role as Nala in Disney’s remake of The Lion King.
She also promoted Homecoming: A Film by Beyoncé on Netflix, accompanied by Homecoming: The Live Album, an audio version of her ‘Beychella’ set.