AND you think your tax bill is bad … Michael Jackson’s estate has just received a whopping tax bill worth more than $780 million. Ouch.

The US Internal Revenue Service [IRS] has said the estate owes $US702 million ($783 million) — $US505 million ($563 million) in taxes and another $US197 million ($219 million) in penalties — according to documents filed with the US Tax Court.

The massive discrepancy comes from just how much Michael Jackson was worth at the time of his death in 2009. The estate placed it at just $US7 million ($7.8 million), stating that the value of Jackson’s likeness was just $US2,105 ($2,350) and his interest in the trust that controlled his music as well as The Beatles catalogue at zero. (Yes, zero!)

Not surprisingly, the IRS has said that’s just not possible. The IRS says the estate should have declared a value of $US469 million ($523 million)

Beatles guru (he’s written eight books on the group) and lawyer Bruce Spizer told TMZ, “No one could value [The Beatles] collection at zero with a straight face.”

Spizer said the IRS may have “slightly inflated” the value of the catalogue, but believes it’s as high as US$400 million ($446 million)

Spizer says, “For the Estate to list the value at zero, they lose all credibility.”

There’s even some debate over the worth of cars Jackson owned when he died.

The estate said his three Rolls-Royces and a Bentley were only worth US$91,600 ($102,000). The IRS put a value of US$250,000 ($279,000) on the luxury cars.

Apparently the executers of Jackson’s estate are unwilling to reach a compromise and have hired a top US tax lawyer to represent them.

Originally published as Jacko’s estate gets $783m tax bill