Pohlad estate settles with IRS over disputed $250M tax claim

Author:
Updated:
Original:

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.

Next Up

Adam Thielen

Vikings place Adam Thielen on COVID-19/reserve list

Thielen is coming off a two-touchdown game against the Cowboys.

MCF Oak Park Heights

COVID-positive inmate at Oak Park Heights prison dies

He becomes the fourth prison inmate to die from the virus.

Screen Shot 2020-11-23 at 1.08.19 PM

2-ton smoker stolen from Twin Cities chef Thomas Boemer

Boemer is the chef behind restaurants including the popular Revival.

Governor Tim Walz

Walz says relief package is coming for Minnesota small businesses

Walz is prepared to call a special session and pass the package immediately.

Governor Tim Walz

Watch live: Gov. Tim Walz COVID-19 press conference Monday

Walz will be introducing a new app that helps Minnesotans track COVID-19 exposures.

Related