Nearly four years after Aaron Carter’s death, the IRS has filed a claim against his estate for $461,253.54 in unpaid taxes, interest and penalties. There is one obvious problem: a judge has already declared the estate insolvent — it has more debts than assets.
The claim, filed with the probate court this month and reported by TMZ, covers five tax years — 2014, 2018, 2019, 2020 and 2021. The smallest balance is just $326.60 from 2014; the largest is $172,538.70 for 2021 alone.
Tax Trouble Was Nothing New
Carter’s money problems were public long before his death. In November 2013 he filed for Chapter 7 bankruptcy in Florida, listing $2,204,854 in liabilities against just $8,232.16 in assets. The debts included $575,340 owed to Live Nation Merchandise, a $31,166 American Express balance and $1,368,140 owed to the IRS — much of it, his representatives said, dating back to income earned in 2003 and 2006, when he was a child star and adults managed his money. His listed possessions at the time included two MacBooks, music equipment, a Louis Vuitton backpack and a Breitling watch valued at $3,750. He reported monthly income of $1,998.75.
The new IRS claim covers different tax years from that bankruptcy — it is a second tax saga, not the old bill resurfacing. Like Britney Spears, who toured with Carter at the height of his fame, he became the defining example of how quickly a teen-pop fortune can evaporate.
The $550,000 Inheritance That Wasn’t
Carter died on 5 November 2022, aged 34, at his home in Lancaster, California. He left no will and was not married, so under California law his infant son, Princeton “Prince” Carter, stood to inherit whatever remained after debts and expenses.
Early probate paperwork listed roughly $550,000 in real estate and personal property, and his mother Jane Schneck said the family wanted everything to go to Prince. A partial inventory in June 2024 appraised the estate’s assets at $757,400 — seemingly better news. But an appraisal is not cash. By December 2024, the administrator’s accounting put assets at about $810,547 yet described the estate as insolvent once obligations and costs were counted. The Lancaster house sale generated only about $7,000 for the estate after its debts; some vehicles turned out to be leased, registered to others or unlocatable; expected royalties were put at about $16,296.
In January 2026, the administrator was citing roughly $164,228 in federal back taxes plus $87,107 owed to California. The new $461,253.54 federal claim overlaps some of the same tax years, so the figures cannot simply be added together — and the filings do not fully explain the jump.
A Family Fight Over What Was Left
As the estate shrank, Carter’s mother Jane and his former fiancée Melanie Martin — Prince’s mother — clashed over its handling. Jane argued the administrator had undervalued Aaron’s music, name and likeness rights, saying they were worth at least $30,000, and alleged that Melanie had made $24,530 in unauthorized withdrawals from Aaron’s accounts after his death. Melanie disputed that, saying the accounts were shared and that Aaron had given her the business behind his LOVE brand. In April 2026, a Los Angeles County judge rejected Jane’s attempt to keep the estate open, confirmed it was insolvent and ordered its remaining non-cash assets distributed to Melanie — a ruling covered in the wider Carter family story that also surrounds Nick Carter and his sisters.
So Who Pays the $461,253?
Not Prince. Under US law, children do not inherit their parents’ debts, and the IRS cannot pursue the boy’s future earnings, his mother’s assets or his uncle Nick Carter’s bank account for Aaron’s unpaid income taxes. The claim is against what Aaron left behind — and in an insolvent estate, federal tax debts generally take priority over other creditors, which is precisely why they leave so little for anyone else.
The exception that keeps administrators careful: assets distributed to beneficiaries before known tax obligations are settled can sometimes be clawed back, and an administrator who distributes improperly can face personal liability. No such finding has been made against anyone in this case.
Unlike Michael Jackson’s estate — which turned crushing debts into a billion-dollar enterprise — Aaron Carter’s left behind hit songs, disputed royalties and bills that exceed everything he owned. The IRS is now formally in line for money that, on the court’s own finding, does not exist.
Sources and notes: IRS claim details from TMZ’s reporting on the October 2026 probate filing, corroborated by OK! Magazine and The Blast. Bankruptcy figures from Carter’s 2013 Chapter 7 filing as reported at the time. Estate valuations, the family dispute and the April 2026 insolvency ruling from probate reporting by TMZ and In Touch. Allegations between family members are reported as claims made in court filings, not findings.
