The three sons of the late Minnesota Twins owner Carl Pohlad have filed a lawsuit in U.S. Tax Court after the Internal Revenue Service said they owed $189 million in back taxes, penalties and fees for undervaluing his stake in his sporting empire.
Forbes Magazine revealed the previously unreported lawsuit, filed last month.
Pohlad’s estate valued his Twins holdings at just $24 million at the time of his death because he had already transferred most of the control of the team to his three sons. But IRS auditors disagreed, calculating his interest at $293 million.
Forbes writes that “the suit provides a glimpse of how currently legal wealth transfer techniques can shield the well-advised uber-rich from the brunt of estate and gift taxes.”
The magazine said the IRS also alleged Pohlad’s estate underreported the value of gifts he made and sought $163 million in back gift taxes. The two sides settled that claim for $16 million.
