Aretha Franklin’s estate and the IRS have come to an agreement regarding her massive tax debt.
According to The New York Times, Franklin owed more than $7.8 million in unpaid income taxes, interests and penalties, accumulated between 2010-2017.
An agreement has now been reached where 45 percent of quarterly revenue will go toward the IRS balance. Another 40 percent would be directed to an escrow account to handle future taxes on the newly generated income and the remaining 15 percent of revenue would be used for managing the estate.
The deal must now be approved by Judge Jennifer S. Callaghan of Oakland County Probate Court in Michigan who’s overseeing the case. An initial payment of $800,000 is to be made to the I.R.S. within five days of the deal’s approval by the judge as well.
The New York Times also reports that the deal lays out a plan as to how the estate will handle ongoing taxes and payments to Franklin’s heirs. The agreement says 40 percent of the estate’s revenues — which are generated by Ms. Franklin’s music royalties and licensing, as well as from Hollywood productions, like a biopic starring Jennifer Hudson — will be held in escrow.
That money is being set aside to cover state and federal taxes owed by the estate, as well as estimated taxes owed by heirs. Franklin’s four sons will receive $50,000 payments while quarterly cash payouts will continue. To date, they have not received any money from their mother’s estate due to the conflict with the IRS.
The Queen of Soul’s estate was valued at $80 million when she passed away on Aug. 16, 2018, after battling pancreatic cancer.
Hudson will star as Franklin in the upcoming biopic Respect, which is scheduled to be released on Aug. 13 in theaters. The film will also feature Forest Whitaker, Marlon Wayans, Mary J. Blige and Tituss Burgess.
