UPDATE: Trustee Recommends Government Excuse Dionne Warwick’s $10M Tax Bill
As soon as we saw this story, we remembered the shock we felt that Dionne Warwick was in such terrible financial straits. Now it looks like she may be off the hook on a huge tax bill.
To bring you up to speed, Dionne Warwick filed for bankruptcy last year, claiming she had $1,000 in the bank, about $25,000 in assets including a two-year- old computer and has an income of $10 per month. Moreover, she owed Uncle Sam millions.
Now a bankruptcy trustee has recommended that the government excuse the $10.7 million-plus that she owes, debt that goes back to 1991. The trustee also recommends that she be allowed to keep all of her stuff, which includes a couple of fur coats, two sets of diamond earrings and $1,500 worth of furniture and the aforementioned computer. The decision will come soon.
Does this sound fair to you?
Originally posted March 27, 2013
Poor Dionne Warwick! The iconic singer had to file for Chapter 7 bankruptcy late last week because of tax liens that go back 20 years. According to her attorney Daniel Stolz, who spoke with Rolling Stone, Warwick actually has been paying taxes, but fell victim to a bad business manager and the penalties and fees that come along with mismanagement.
Warwick’s tax problems began sometime around 1998 and by 2009, it was being reported that she owed $2.2 million. The IRS corrected the record to $1 million. Despite her continued payments, it wasn’t enough to pay for the fees that were accruing. This bankruptcy filing is an attempt to clear off the debt once and for all.
Rolling Stone says that her income has fallen and, according to the bankruptcy petition, when you take her expenses into account, Warwick is making $10 per month. An internationally-known singer with decades of celebrity and hit songs under her belt is making a net income of $10 per month at the age of 72. The magazine says this is “a figure that is not unusual for a celebrity after living costs and mortgages are factored in.”
Are you shocked by any of this? Because you could knock me over with a feather right now.
Update: The New York Daily News provides more financial information, which only makes the picture look worse. Besides living on a net income of $10 per month, the newspaper says she only has $1,000 in her bank account and $25,500 in assets including a two-year-old computer. And, according to the bankruptcy filing, she’s in debt to the tune of $10.7 million. Most of that ($10.2 million) is owed to the IRS, but there’s also $20,000 in credit card debt. Yikes. We wish her the best.