Prince's French Tax Matter Not Settled Yet, IRS Says
ST. PAUL, MINN. (AP) - Although lawyers for Prince say the entertainer has given French tax collectors everything they wanted, the IRS says he still needs to obey the summons it issued for him.
The two tax returns that Prince's representatives turned over to French officials were undated and unsigned, and a lawyer for the IRS says the agency isn't sure the documents are all the French need.
"The IRS requires additional time to review the documents, make a determination whether the production of documents constitutes full compliance with the summons, and, if necessary, consult with the French Competent Authority," Justice Department lawyer Daniel Applegate wrote in a response to Prince's December reply.
Until then, the IRS summons "is valid and enforceable" and a court hearing scheduled for Friday should go on as scheduled, Applegate told U.S. District Judge David Doty.
In September, the IRS went to federal court to enforce a summons issued for the musician, identified in court papers by his full name, Prince Rogers Nelson. Neither he nor his representatives showed up for an April meeting with the IRS over the matter.
Doty had ordered a show-cause hearing to find out why the summons was ignored.
The French had asked the IRS for the summons, saying they wanted to make sure Prince, 54, and his company, Paisley Park Enterprises Inc., had paid all required taxes stemming from shows he played in that country in 2009 and 2010.
On Dec. 28, a lawyer for Prince filed a reply, saying that nobody had shown up for the April meeting with the IRS because the summons hadn't been properly served. The lawyer also wrote that Prince believed his previous business managers had filed everything they were supposed to, and that the documents had since been provided and the show-cause hearing wasn't needed.
In his reply, Applegate said that wasn't necessarily the case. The 2009 and 2010 tax returns that Prince gave the French lacked dates and signatures, the Justice Department lawyer wrote in his reply, filed Friday, Jan. 4.
"As of this date, the Internal Revenue Service has not determined whether 1) the documents are responsive to the summons, and 2) the Respondent has fully complied with the summons," Applegate's reply says.
The French tax matter is not the rock star's only tax problems. Laurie Engelen, Carver County's taxpayer services manager, said records in that county showed delinquent taxes on 15 parcels associated with Prince, Paisley Park Enterprises, PRN Music Corp. or Love 4 One Another Charities.
The total tax, penalty and interest due is more than $360,500, Engelen said.
The singer lives in Chanhassen, in property owned by PRN Music Corp.
Copyright Associated Press 2012