Superstar Beyoncé is gearing up for a battle with the Internal Revenue Service. According to the IRS, Beyoncé, who has an estimated net worth of $500 million, owes over $2.7 million in tax penalties.

The “Renaissance” singer has petitioned the agency to double check their paperwork, claiming the government denied her millions in deductions and charitable donations. So now Beyoncé is challenging the IRS in the U.S. Tax Court.

Beyoncé, 41, is currently gearing up to kick off her Renaissance tour on May 10. Billboard reported the tour could gross at least $275 million. 

Here are five things to know about Beyoncé’s faceoff with the IRS.

1. Beyoncé: it was for charity 

According to the singer’s petition, the IRS rejected more than $800,000 in valid charitable donations. Generally, taxpayers can deduct up to 60 percent of their adjusted gross income via charitable donations, but may be limited to 20 percent, 30 percent, or 50 percent depending on the type of contribution and the organization, according to NerdWallet.

2. Beyoncé: I’m not paying up…for now

The “Break My Soul” singer says she would not have to pay the 20 percent fee due until the case had been decided, Forbes reported.

3. What the IRS says

She has petitioned the court to reconsider a January Notice of Deficiency assessed by the IRS. The notice states that Beyoncé owes over $1.4 million in additional tax and over $288,000 in penalty for 2019. For 2018, the agency claims she owes about $805,000 in extra tax and $161,000 in penalty, according to Forbes.

A notice of deficiency is a legal determination by the IRS of a taxpayer’s tax deficiency, according to Investopedia.

4. What Beyoncé says

Beyoncé submitted a 20-page petition in which she argues that the agency refused millions of dollars in deductions, including $868,766 attributable to a charitable contribution carryover from 2018, Business Insider reported. She also says that penalties shouldn’t apply to any owed taxes as she “has acted reasonably and in good faith.”

In addition, the petition stated, “On information and belief, Respondent erred in determining that Qualified Business Income Deductions of $3,581 reported in 2018 and $14 reported in 2019 should be disallowed.”

The IRS was incorrect, says the Grammy Award winner, in finding that she failed to report $1,449 in royalty income in 2018, Fox Business reported.

5. What’s next for the case?

So far, no court date has been scheduled. Beyoncé is being represented by Michael C. Cohen of De Castro, West, Chodorow, Mendler & Glickfeld, Inc.

Beyonce in the audience at the 65th annual Grammy Awards on Feb. 5, 2023, in Los Angeles. (AP Photo/Chris Pizzello)