Earlier this month,filed a petition in the United States Tax Court contesting nearly $2.7 million in tax and penalties. The document asks the court to reconsider additional tax and penalties assessed by the IRS in a Notice of Deficiency given on Jan. 18, 2023.
According to the notice, Beyoncé owes $805,850 in additional tax and $161,170 in penalty for 2018. It also states she owes $1,442,747 in additional tax and $288,549.40 in penalty for 2019. There is also interest due on those amounts. Beyoncé argues in her petition that this was an error on the IRS' part, and claims they refused millions of dollars' worth of deductions, including $868,766 attributable to a charitable contribution carryover reported in 2018.
As for the penalties, the IRS assesses that 20 percent of the amount of the underpayment of tax is due. However, Beyoncé contests in her petition that because she"has acted reasonably and in good faith," if any tax is due, the penalties should not apply. Beyoncé filed her petition as the sole taxpayer, and her husband, JAY-Z, is not included in the filing., once the petition is filed, a taxpayer typically doesn't have to pay the underlying tax until the case has been decided.
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