Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Pohlad Estate Brings Lawsuit Against IRS Over $189 Million Tax Bill Regarding Minnesota Twins
Author: Scarinci Hollenbeck, LLC
Date: July 15, 2013
Key Contacts
Back
Robert and William Pohlad, sons of late Minnesota Twins owner Carl Pohlad, who passed away in 2009, have brought a lawsuit against IRS regarding a disputed $189 million tax bill.
The IRS recently imposed the multi million-dollar tax liability on the heirs, arguing that Pohlad’s estate undervalued his stake in the Minnesota Twins, according to Forbes. In the lawsuit filed in the U.S. Tax Court, Pohlad’s estate valued the late owner’s stake in the Minnesota Twins at $24 million for tax purposes. However, IRS auditors disputed these figures and valued his stake at approximately $293 million. In response, the IRS tacked on $121 in additional taxes, and imposed a 40 percent penalty for “gross valuation misstatement” that amounts to an added $48 million, Forbes reports.
Further, after scrutinizing a series of wealth transfer methods Pohlad utilized to pass assets on to his heirs, the IRS also claims that he undervalued the gifts he made to beneficiaries. Pohlad made full use of the gift tax law when passing considerable wealth to heirs, and stated that the gifts he transferred amounted to $129 million. However, auditors later argued that Pohlad made $446 in taxable gifts.
Pohlad’s sons are the executors of his estate, and assert that all estate and gift taxes have been paid to the IRS. In the lawsuit, the estate asserted that it paid the $16 million in gift taxes and $26 million in estate taxes.
Several high-profile estate tax cases between the IRS and late sports team owners are currently ongoing, the most recent of which is a lawsuit waged by the estate of Detroit Pistons’ former owner Bill Davidson, who received a $1.9 billion tax bill from the IRS. In some ways similar to the Pohlad case, the IRS charges that Davidson undervalued millions in private stock that was passed down to heirs. The estate, meanwhile, asserts that all estate and gift taxes paid to the agency were accurate.
- Practices: Tax and Trusts & Estates, Sophisticated Estate Planning & Wealth Preservation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Dissolving Your Business: Essential Legal Steps to Protect Your Interests
If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]
Author: Christopher D. Warren
The Role of Corporate Restructuring in Mergers & Acquisitions
Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]
Author: Dan Brecher
Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public
Cryptocurrency intimidates most people. The reason is straightforward. People fear what they do not understand. When confusion sets in, the common reaction is either to ignore the subject entirely or to mistrust it. For years, that is exactly how most of the public and even many in law enforcement treated cryptocurrency. However, such apprehension changed […]
Author: Bryce S. Robins
Understanding Chattel Paper: A Key Component in Secured Transactions
Using chattel paper to obtain a security interest in personal property is a powerful tool. It can ensure lenders have a legal claim on collateral ranging from inventory to intellectual property. To reduce risk and protect your legal rights, businesses and lenders should understand the legal framework. This framework governs the creation, sale, and enforcement […]
Author: Dan Brecher
Crypto Compliance: A Comprehensive Guide
For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]
Author: Bryce S. Robins
Supreme Court and Title VII: Implications for Reverse Discrimination
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Author: Matthew F. Mimnaugh
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.