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Opinion: MJ Estate v. IRS – The already reduced tax amount

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Estate v. IRS
25 February 2017
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Back in 2014 I did a series of opinion pieces on the MJ Estate v. IRS Estate tax dispute. (Link here, here and here).Initially I planned to do more posts getting more technical about tax issues and valuation. However after seeing the confusion even about market value vs. tax value, I realized how complex and boring the tax discussion was for many people. So I scratched my idea of posting more opinion pieces.

From the start I believed that the true tax amount was in the middle of what MJ Estate and IRS were saying. A further look into other similar disputes confirmed this belief. So I did not see any real benefit in speculating and even arguing about what the final tax amount would be. Plus I thought the parties would come to a settlement rather quickly. Unfortunately I was wrong.

irsblog1  irsblog2 

 

By the time the trial finally started in February 2017, I was focused on other cases. I still felt the same way about IRS case – that I did not want to do technical complex (and even boring) posts and that the true amount was somewhere in the middle. I was optimistic that a major media source would report on the case regularly but that did not happen. While media occasionally reported intriguing testimony, they too did not seem to be interested in reporting the complex valuation issues.

However one thing from the opening statements stood out to me. It seemed like neither the media nor the majority of the fans were realizing that the tax deficiency had already been significantly reduced.

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Safechuck Demurrer Ruling : Hanging on by a Thread

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Robson v. Estate
13 February 2017
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At the end of January 2017, Judge Beckloff ruled on Estate’s demurer to Safechuck’s second amended complaint. Judge granted Estate’s demurrer but gave Safechuck another chance to amend his complaint. Although we have been through this successful demurrer by MJ Estate followed by another amendment dance before, this time is significant because this is the first time that the judge evaluated the new claims by the new lawyers. Beckloff’s ruling sounds so promising as he questions almost everything Safechuck and his new lawyers claimed. Simply put, Judge Beckloff isn’t buying any of it.

Judge’s ruling on MJ Estate’s demurrer to Safechuck’s second amended complaint: https://www.scribd.com/document/339174005/Ruling-MJ-Estate-Demurrer-to-Safechuck-2nd-Amended-Complaint

A summary of the judge’s ruling can be found below:

Ruling shows that Judge Beckloff mainly focused on is the issue of control. According to the law, Safechuck is required to show that the MJ Companies had control over Michael and prior knowledge of wrongdoing. MJ Estate demonstrated that Michael was the 100% shareholder/ owner/ president of the MJ Companies. Safechuck admitted this was the case and Michael had control over the companies’ activities.

Judge points out that there were no claims in Safechuck’s complaint that someone controlled the 100% shareholder / owner/ president Michael.  Judge states although some of the MJ Companies employees were mentioned, none of them were alleged to have control over Michael. For example Jolie Levine was mentioned as a managing agent of the MJ Companies but there was no allegations that she had the ability to control Michael. Furthermore the complaint did not allege that she had any knowledge of any “abuse”. In his ruling Judge repeatedly brings up the control issue and states as a matter of law the MJ companies did not have the ability to hire, fire or supervise their sole shareholder / owner and president Michael.

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Breaking: Katherine Jackson requests to join Bain, El-Amin case against MJ Estate

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MJ Company Lawsuit
11 February 2017
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On February 2nd, Katherine’s lawyers filed a motion to join Quadree El-Amin, Broderick Morris, Aldean King and Raymone Bain lawsuit against Michael Jackson Estate. I reported about this lawsuit earlier at the “Who owns the Michael Jackson Company?” blog post in detail. 

In short; El-Amin, Morris, King and Bain claimed combined 15% ownership at the Michael Jackson Company. They claimed Michael signed one page document at 3 AM at a Tokyo hotel room. This document also listed 10% ownership interest for Katherine Jackson.

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Excerpts from Wade and Joy Robson Depositions and Emails

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Robson v. Estate
09 January 2017
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In our first post, we discussed how Wade Robson and his partners in crime are deliberately withholding evidence, or worse, getting rid of evidence and therefore denying the estate from a productive discovery. In this article we are going to review a 264-page-long document that was filed in support of the Estate’s motion.In the document there are 42 exhibits altogether however unfortunately, the majority of the exhibits are sealed. Nonetheless, what we can see already reveals some interesting things. The document includes a couple of emails between Wade Robson, his mother and other parties, extracts from both Wade and Joy Robson’s depositions, some email correspondence between Robson’s and the Estate’s lawyers regarding discovery matters, and a log file Robson’s lawyers provided of Robson’s emails that they consider privileged.

From Exhibits Robson Emails : https://www.scribd.com/document/336110667/Robson-Emails

From Exhibits Excerpts of Wade and Joy Robson Depositions: https://www.scribd.com/document/336110841/Robson-Deposition-Excerpts

Joy Robson: “Wow. None of that is true…”

In our article about the Estate’s motion to compel we already mentioned an email exchange between Wade Robson and his mother Joy Robson on February 15, 2016. In this email Wade Robson asks his mother about a story by a security guard to which Joy Robson replies “Wow. None of that is true…” This e-mail is included among the exhibits and now we can confirm that our suspicion that it was about Charli Michaels’ claims was correct. Moreover, it is the EXACT same story, almost verbatim, that Robson uses in his latest amended complaint filed in September 2016 as we have shown in our previous post. (Link)

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More Articles ...

  1. BUSTED! Wade Robson Got Caught Hiding Evidence and Shopping a Tell-All Book
  2. MJ Estate Demurrer to Safechuck - Round 2
  3. MJ Estate Preliminary Answer to Robson's 4th Amended Complaint
  4. Yet Another Robson/ Safechuck/ Doe Lawyers Radio Interview
  5. MJ related lawsuit updates – November 2016
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