Prince owes more than $500,000 in back taxes, interest and fines on a dozen properties, including $221,891.88 on Paisley Park Studios in Chanhassen, where the Minneapolis-born rock and film star also has a home. Prince is among dozens of other delinquent property taxes owed by property owners in the county who owe taxes due in 2009 and had their names and property information published in the Chaska Herald last week. Officials in the star’s hometown of Minneapolis, Minnesota claim Prince and his PRN Music Corp. owe more than $500,000 in taxes, fines and interest relating to the singer’s properties in the area. Prince has until May to pay up before officials take the matter to court.
No other property owner listed in the paper comes close to what the county says Prince owes in back property taxes to the Franchise Tax Board and the IRS. Prince’s home and other properties establish him as one of the largest property owners in the county; making the taxes he owes the city a significant amount. Asked to comment about the delinquencies, a Prince representative said the Purple One preferred to remain silent on the issue.
County officials also haven’t heard from him about his late payments. As required, the county sent Prince a notification letter on Feb. 15 about the delinquent tax bill. This is not the first time Prince has procrastinated in paying property taxes. He was late in paying on his studio in 2006 and 2008 as well. And he was late in 2008 paying on a 156-acre swath bordering his home.
Eventually, Prince made good on those bills before the county, as required by law. More renowned as an artist than businessman, Prince has had financial difficulties in the past with paying creditors on time or at all, according to published reports in 1995. But he has yet to have tax problems with the IRS, but those could be right around the corner.
Prince is also being sued in Ireland because he owes almost $3 million (damages accessed) to Dublin concert promoters. Prince canceled his 2008 concert at the last minute, costing the promoters a bundle of money. The Irish High Court Justice, Peter Kelly just made public that Prince owes the money and must make immediate payment arrangements. When Prince was informed by one of his agents that the Irish are pretty upset at him and that he owes them money, Prince reportedly said, “Tell the cat to chill. We will work something out.”
The scandal of Prince owing so much money to a small county in Minnesota and the IRS as well damages his reputation and blackens his name. When such a problem arises in California, the scandal is amplified times ten. As a result, celebrities and high profile individuals should come to the Tax Resolution Institute and receive help from a tax expert before their tax problem becomes a tax crisis.
About Peter Y. Stephan
Peter Y. Stephan, executive director of the Tax Resolution Institute, has been helping people resolve large, complex payroll tax problems and personal income tax problems for over 25 years. Peter has written a book "The Ultimate Tax Resolution Guide" and speaks on Tax Resolution topics frequently.