Settlement Reached with IRS
The estate of the late award-winning singer and actress Whitney Houston has reportedly reached a deal with the Internal Revenue Service (IRS) to pay $2,275,366 in taxes far less than the $11.7 million the IRS originally claimed was owed.
Dispute Over Valuation
Houston’s estate and the IRS have been battling over the value of her royalties, residuals, and image.
Whitney Houston, the much-awarded singer, died in 2012 at the age of 48 after drowning in her bathtub, with cocaine and heart disease contributing to her demise.
Inheritance and Family Disputes
Her daughter Bobbi Kristina Brown was initially named the sole beneficiary of her estate. However, she died in 2015 at the age of 22, also after being found in her bathtub. She slipped into a coma and passed away several months later in a hospice.
Avoiding Trial
A trial in the case of Houston’s estate was scheduled for February, but the settlement will allow the IRS and the estate to avoid court, according to the entertainment news site The Blast, which first reported on the deal.
Separate Legal Battles
Bobbi Kristina Brown’s estate has been the subject of a separate dispute among various family members, including:
- Her father, Bobby Brown
- Her grandmother, Cissy Houston
Both are also celebrated singers in their own right.
Frequently Asked Questions
What was the total tax settlement amount Whitney Houston’s estate agreed to pay the IRS?
The estate agreed to pay $2,275,366 in taxes, which is significantly less than the original $11.7 million assessment by the IRS.
Why was there a dispute between Whitney Houston’s estate and the IRS?
The dispute centered on the valuation of Houston’s royalties, residuals, and image rights, which the IRS believed were worth significantly more than the estate claimed.
What happened to Whitney Houston’s daughter, Bobbi Kristina Brown?
Bobbi Kristina was initially the sole heir of Houston’s estate but tragically passed away in 2015 after being found unresponsive in a bathtub. She was in a coma for several months before dying in hospice care.
Was there going to be a trial regarding the estate’s tax issues?
Yes, a trial was scheduled for February, but the settlement allowed both the IRS and the estate to avoid court proceedings.
Are there other legal disputes related to the Houston family?
Yes, Bobbi Kristina Brown’s estate has been involved in a separate legal battle among family members, including her father Bobby Brown and grandmother Cissy Houston.