Beyoncé Knowles-Carter is feuding with the Internal Revenue Service (IRS) after the agency claimed the singer owed about $2.7 million in taxes, which she says included several errors in determining her 2018 and 2019 tax returns.
On April 17, Beyoncé filed a lawsuit against the IRS in U.S. Tax Court seeking nearly $2.7 million in back taxes and penalties. The IRS claims that Beyoncé owes $805,850 for 2018 and $1,442,747 for 2019, plus an additional $449,719.40 in penalties for those years combined, according to the Notice of Deficiency.
Owing money to the IRS could cause the agency to begin collection proceedings. The IRS will send the singer a bill showing the amount she owes, plus any penalties and interest. If she does not pay the bill in full within 30 days, the IRS can take additional steps to collect the debt, such as garnishing wages, levying bank accounts, seizing property, denying her passport and revoking her driver’s license.
Fortunately for Beyoncé, she filed a petition within 90 days of the date of the IRS notice of deficiency.
The appeal filed by her attorney states that an itemized deduction of $868,766, which was a charitable donation in 2018, should be allowed.
Although it is not certain where the money is going, Beyoncé is reportedly a giving person, especially through her foundation, BeyGOOD.
BeyGOOD is a public charity foundation founded by Beyoncé in 2013. It is a non-profit organization that focuses on economic equity, education, and criminal justice reform.
“The IRS assessed section 6662(a) penalties—accuracy-related penalties,” Forbes reported. “By statute, those penalties are 20 percent of the amount of the underpayment of tax. However, [Beyoncé] Knowles-Carter argues in her petition that if any tax is due, the penalties should not apply because she ‘has acted reasonably and in good faith.’”
Beyoncé, whose net worth is estimated at $450 million, is gearing up for her Renaissance World Tour next month, which will kick off with a series of concerts in Europe from May 10 to June 28, after which she will travel to the U.S. for shows from July 12 to September 27.
