On January 18, 2023, the IRS issued a Notice of Deficiency to entertainer and record producer, Beyoncé Knowles-Carter. Per the Notice of Deficiency, first reported by Forbes, Beyoncé allegedly owes $805,850.00 in additional tax, together with $161,170 in penalty owed for 2018.
She also owes $1,442,747.00 in additional tax, together with $288,549.40 in penalty for 2019. The publication also notes there is interest due on those amounts.
However, the musician has filed a petition in court challenging the nearly $2.7 million in tax and penalties, asking the court to reconsider additional tax and penalties assessed by the IRS on January 18, 2023, Notice of Deficiency.
She claims the IRS “erred in disallowing millions of dollars’ worth of deductions, including $868,766 attributable to a charitable contribution carryover reported in 2018.” She also argues that if any tax is due, the penalties should not apply because she “has acted reasonably and in good faith.”
The singer filed the petition as a sole taxpayer, and her husband, Jay-Z, wasn’t included. He remains one of the highest-paid musicians in the world with an estimated net worth of $1.2 billion and a number of businesses under his sleeves.
She is being represented by Michael C. Cohen of De Castro, West, Chodorow, Mendler & Glickfeld, Inc. However, according to Forbes, while the cases are scheduled to go on trial soon, most tax cases are settled out of court.
Beyoncé first rose to fame as the lead singer in the girl-group, Destiny’s Child, but has now become a larger-than-life icon. Together with her husband, Jay-Z, they have a net worth of $2 billion. However, She has a personal net worth of $400 million, according to Forbes.
Just like her billionaire husband, Beyoncé built a career and wealth in and outside the studio. She and her husband have jointly invested in a number of businesses, including the ones she is the sole investor of.
She introduced the House of Dereon, which had a contemporary women’s fashion line. The fashion line primarily made sportswear, denim with fur, handbags and footwear.
In 2015, she established an on-demand meal delivery service, which was based on a vegan food culture called 22 Days Nutrition.
Beyonce also launched her own fragrance line called Beyonce Heat. According to a Forbes report, she earned 400 million dollars from the product.
Perhaps, the most important business is the music streaming service Tidal. According to reports, a chunk of her money comes from the platform.
Aside from her businesses, Beyoncé also makes money from other sources, including endorsement deals and posts on social media. She emerged as one of the two highest-paid Black celebrities on Instagram.
In 2019, Beyonce signed a 60 million dollar contract with Netflix, which then streamed her Coachella performance. Moreover, she has also appeared as the face of brands like Giorgio Armani, and launched Tommy Hilfiger’s fragrance called Truestar.
She also has a partnership with Adidas. The music icon further has a streaming music service and has served as a spokesmodel for L’Oreal, promotes Pepsi, and is also into film production. She recently announced that she was investing in a hemp farm to obtain her own CBD.
Recently, Beyonce and Jay-Z purchased the world’s most expensive car, “The Boat Tail,” built by Rolls-Royce. They reportedly bought the custom-built luxury car for an estimated $28 million.
The car is said to be a rare collector’s item, with only three in existence. Torsten Müller-Ötvös, CEO of Rolls-Royce Motor, described The Boat Tail as the company’s “most ambitious project yet.”
