A dispute between the Internal Revenue Service and the estate of Carl Pohlad was settled out of court for significantly less than what the federal agency originally claimed the family owed.
The IRS had argued the Pohlad family owed more than $250 million in estate taxes, based on the agency's evaluation of Carl Pohlad's stake in the Twins at the time of his death, the Business Journal reported. The Pohlad family disagreed, and in 2013 filed a lawsuit against the IRS.
A spokesperson with Pohlad Companies confirmed with BringMeTheNews Thursday that the sides reached a settlement on June 5, and included a statement from attorney John Porter.
Porter said the estate paid $36 million to the IRS, a total that included interest, and said the payment fully covers the Pohlad estate's obligation.
"The family is happy that this process been resolved amicably and is now concluded,” he said.
An IRS spokesperson declined to comment when asked by the Star Tribune. The paper spoke with estate attorneys, who said a settlement occurring out of court, while the parties inch toward a trial, is not uncommon.
The tax issues behind it are complicated – but basically, the IRS argued Carl Pohlad's interest in the Twins was worth $293 million when he died in 2009. His family argued he'd given most of the ownership to his sons, and the elder Pohlad's interest was worth about $24 million, as Forbes explained.
If you want a more in-depth walkthrough, check out this Forbes breakdown from 2013.