- Associated Press - Thursday, August 20, 2015

MINNEAPOLIS (AP) - The Internal Revenue Service has settled a nearly $256 million claim on the estate of billionaire Carl Pohlad for a fraction of what the federal agency initially demanded.

According to documents filed in U.S. Tax Court, the Pohlad family will pay the IRS $36 million, which includes about $7 million in penalties and interest, in a dispute over the estate’s ownership interest in the Minnesota Twins. The document outlining the terms of the agreement between the Pohlad estate and the IRS doesn’t include any details on how the final numbers were reached.

The IRS claimed Pohlad’s interest in the Twins baseball team was $293 million when he died in 2009. The family argued it was $24 million because Pohlad has transferred the bulk of ownership to his three sons, Jim, Bob and Bill, before his death.

In March 2013, the agency filed what’s known as a “notice of deficiency” against the Pohlad estate, and the family petitioned the Tax Court for a hearing on the matter several months later.

A four-day trial was held before a U.S. Tax Court judge in Houston in late September 2014, featuring testimony from expert witnesses on both sides of the dispute who addressed estate valuation issues.

An out-of-court settlement isn’t unusual for after a case is set for trial before a Tax Court judge, according to estate attorneys.

Pohlad attorney John Porter said in a statement to the Star Tribune (https://strib.mn/1gYo56W ) that the family is happy the matter has been resolved amicably. He said the recent payment “fully extinguishes the estate’s obligation to the IRS.”

An IRS spokeswoman declined to comment on the case, citing taxpayer privacy laws.

In addition to the Minnesota Twins, the Pohlad family also is involved in financial services, commercial real estate, media and automotive dealerships.

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Information from: Star Tribune, https://www.startribune.com

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