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Billionaire Carl Pohlad Estate Resolves IRS claim

Tuesday, October 6, 2015
This week the IRS settled a claim in U.S. Tax Court of over $250 million on the Pohlad Family Estate for a small percentage of what they originally demanded. The Pohlad family are the owners of the Minnesota Twins baseball team, and have an involvement in commercial real estate, financial services, media, and car dealerships. Carl Pohlad, who passed away in 2009.  The Pohlad family ranks number 5 on Forbes richest families in America list.

The Pohlad family was involved in a lawsuit (filed by the Pohlad estate) that challenged an assessment of over $120 million in estate taxes which did not include a $48 million penalty and interest charges.
The judgement ruled for the Pohlad family to pay the IRS $36 million, $7 million of which are penalties and interest. There are no details documenting the breakdown of the settlement.

Originally, the IRS claimed that the families’ financial interest in the baseball team was over $290 million when Mr. Pohlad passed away.  However, the estate claimed that the value was closer to $24 million, ten times less than the exaggerated estimate, since ownership was transferred to his three sons before he died.  The IRS filed a “notice of deficiency” in 2013 and a hearing was held a few months later.  In September 2014, a four-day trial was held which included testimony about the estate valuation.

Currently valuation discounts is a hot topic with the IRS. This may have alerted the U.S. Treasury Department to create stricter guidelines about valuation discounts associated with estate planning.

If you want to avoid IRS issues, unexpected outcomes and future tax burdens is to have a well-thought out estate plan.  The Strategic Tax Lawyers can assist you and your loved ones avoid stress and hardship by creating an estate plan to avoid probate and other IRS-related issues.  Probate can be very expensive, draining and time consuming.  You can avoid probate and protect your assets with a surefire estate plan. We recommend that every family create an estate plan to avoid the headaches that can occur later on in life. If you have assets, that include investment, savings, retirement accounts, insurance policies, real estate and business interests, then you need to consider your financial affairs today and create an estate plan with the help of the Strategic Tax Lawyers.

We are the Strategic Tax Lawyers, a firm made up of IRS Tax Attorneys, IRS Bank Levy Attorneys, and Estate Tax Lawyers. If you need an attorney for your estate legal handlings, contact the Strategic Tax Lawyers since we have experience with leviesCall the Strategic Tax Lawyers at (800) 669-4775 for a free consultation.