Earlier this month, Beyoncé filed a petition with the United States Tax Court challenging nearly $2.7 million in taxes and penalties. The filing asks the court to reconsider the additional taxes and penalties assessed by the IRS (Internal Revenue Service) in a Notice of Deficiency issued on January 18, 2023.
According to the release, Beyoncé owes the state $805,850 in back taxes and $161,170 in penalties for 2018. It also says she owes $1,442,747 in back taxes and $288,549.40 in penalties for 2019. There is also interest on those amounts.
Beyoncé argues in her petition that this was an error on the part of the IRS and claims they disallowed millions of dollars worth of deductions, including $868,766 attributable to a reported charitable contribution transfer in 2018.
As for penalties, the IRS estimates that 20 percent of the amount of the tax underpayment is due. However, Beyoncé counters in her petition that because she "acted reasonably and in good faith," if she owes any taxes, the penalties should not apply.
Beyoncé filed her petition as a single taxpayer, and her husband, Jay-Z, is not included in the filing.
