IRS Claims Davidson’s Estate Owes Big Money

As I have previously discussed, the legal battle between theWilliam Davidson’s widow and son versus Jonathan Aaron, co-executor ofDavidson’s estate and president of the William Davidson foundation, and wifeMary continues. Forbes labeled Davidson was the 62nd most wealthy personin the U.S. so it is no wonder why his estate faces so many claims. In additionto the ongoing family legal battle, Davidson’s estate could possibly face a TaxCourt judgment of up to $2.8 billion dollars in estate tax, gift tax, andpenalties that the IRS is claiming the estate has not paid. 

Now, IRS lawyers are claiming that the$2.8 billion dollar bill issued to the Davidson estate is correct because ofhis failure to account for Davidson’s huge gifts and stock value. In response,estate representatives assert that the IRS bill is “wildly inflated”and that despite the tax deficiency the payment of taxes was up to date.

The Free Press reported the entire $2.8billion will probably not be owed to the IRS, but because of the largeaccounting deficiency, a $2 billion dollar tax is not unlikely. This could bethe largest estate tax battle in U.S. history.

See Todd Spangler IRS Lawyers Defend $2B Tax Bill Davidson Estate, Detroit Free Press,  Aug. 15, 2013.