Michael Jackson's estate owes $702mln in unpaid taxes

The Michael Jackson Estate is being pursued for 702 million dollars in unpaid taxes by the US' Internal Revenue Service after being accused of undervaluing assets following the pop legend's tragic death in 2009.

The Internal Revenue Service (IRS) accused the late 'Thriller' hitmaker's executors of significantly undervaluing assets following the singer's death in 2009, and has launched a legal battle in a bid to secure 505 million dollars and an additional 197 million dollars in penalties, Contactmusic reported.

In US Tax Court documents in Washington, obtained by the Los Angeles Times newspaper, the agency claims the estate inaccurately placed the popstar's net worth at slightly more than 7 million dollars when Michael died after an overdose of a surgical-grade anesthetic, and argue he was actually worth 1.125 billion dollars.

The IRS said that the estate's original tax return was so inaccurate that it qualified for a gross valuation misstatement penalty, which would allow the government to double the usual 20 percent penalty for underpayment.