Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Pohlad Estate Brings Lawsuit Against IRS Over $189 Million Tax Bill Regarding Minnesota Twins
Author: Scarinci Hollenbeck, LLC
Date: July 15, 2013
Key Contacts
Back
Robert and William Pohlad, sons of late Minnesota Twins owner Carl Pohlad, who passed away in 2009, have brought a lawsuit against IRS regarding a disputed $189 million tax bill.
The IRS recently imposed the multi million-dollar tax liability on the heirs, arguing that Pohlad’s estate undervalued his stake in the Minnesota Twins, according to Forbes. In the lawsuit filed in the U.S. Tax Court, Pohlad’s estate valued the late owner’s stake in the Minnesota Twins at $24 million for tax purposes. However, IRS auditors disputed these figures and valued his stake at approximately $293 million. In response, the IRS tacked on $121 in additional taxes, and imposed a 40 percent penalty for “gross valuation misstatement” that amounts to an added $48 million, Forbes reports.
Further, after scrutinizing a series of wealth transfer methods Pohlad utilized to pass assets on to his heirs, the IRS also claims that he undervalued the gifts he made to beneficiaries. Pohlad made full use of the gift tax law when passing considerable wealth to heirs, and stated that the gifts he transferred amounted to $129 million. However, auditors later argued that Pohlad made $446 in taxable gifts.
Pohlad’s sons are the executors of his estate, and assert that all estate and gift taxes have been paid to the IRS. In the lawsuit, the estate asserted that it paid the $16 million in gift taxes and $26 million in estate taxes.
Several high-profile estate tax cases between the IRS and late sports team owners are currently ongoing, the most recent of which is a lawsuit waged by the estate of Detroit Pistons’ former owner Bill Davidson, who received a $1.9 billion tax bill from the IRS. In some ways similar to the Pohlad case, the IRS charges that Davidson undervalued millions in private stock that was passed down to heirs. The estate, meanwhile, asserts that all estate and gift taxes paid to the agency were accurate.
- Practices: Tax and Trusts & Estates, Sophisticated Estate Planning & Wealth Preservation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
SECURE 2.0 RMD Planning Strategies
How the Updated Law Shapes Retirement and Estate Planning The SECURE 2.0 Act of 2022 materially reshapes the required minimum distribution (RMD) landscape, extending tax deferral opportunities while accelerating distribution requirements for many beneficiaries. For high-net-worth individuals and families, these changes are not merely technical. They require a reassessment of retirement income strategies, beneficiary planning, […]
Author: Marc J. Comer
Buying Commercial Property in New Jersey: Legal Guide for Small Businesses
Small businesses considering buying commercial property in New Jersey must evaluate a range of legal, financial, and operational factors. While ownership can offer long-term value and control, it also introduces significant risks if not properly structured. This guide outlines key considerations to help New Jersey business owners make informed decisions, minimize legal exposure, and successfully […]
Author: Robert L. Baker, Jr.
The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities
On January 28, 2026, staff of the U.S. Securities and Exchange Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets issued a joint statement clarifying how existing federal securities laws apply to tokenized securities. The SEC’s “Statement on Tokenized Securities” does not establish new law, but it does provide greater clarity on the […]
Author: Dan Brecher
Common Legal Mistakes NYC and New Jersey Business Owners Make
Operating a business in the New Jersey and New York City metropolitan region offers incredible opportunities, but it also requires navigating a dense and highly regulated legal environment. From entity formation to regulatory compliance, seemingly minor legal oversights can expose business owners to significant risk. In our work with businesses throughout the region, our attorneys […]
Author: Dan Brecher
What Founders Can Learn From Start-up Suits
High-profile founder litigation is more than just a media spectacle. For startup founders, these cases underscore the legal and structural risks that can arise when rapid growth outpaces formal oversight. While launching a new company can be both an exciting and deeply rewarding endeavor, founders must be mindful that it also comes with significant risks. […]
Author: Dan Brecher
Corporate Governance Reviews: A Practical Guide for New Jersey Companies
Every New Jersey company should periodically evaluate its governance framework. Strong corporate governance protects directors and officers, builds investor confidence, reduces litigation exposure, and positions a company for sustainable growth. The first quarter of the year is a great time to evaluate your corporate governance practices and perform any routine maintenance needed to keep that […]
Author: Ken Hollenbeck
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.