Dionne Warwick filed for Chapter 7 bankruptcy last Thursday because her tax liability to the IRS and the state of California ballooned to over $10 million.
The April 15 tax deadline is looming for all Americans, but for Dionne Warwick, that deadline is looming large. Last Thursday, the legendary singer filed for bankruptcy in a New Jersey court.
Warwick filed for Chapter 7 because she owes close to $10 million in back taxes to the IRS and the California Franchise Tax Board. The amount has ballooned over the years with additional penalties and interest.
Her tax troubles have been well-known in the entertainment industry. Back in 2009, her tax bill was approximately $2 million to the state of California alone.
The burden became too much for the 72-year-old. Her liabilities now include $7 million to the IRS for the years 1991 through 1999. She also owes more than $3 million to California for business taxes.
According to the Huffington Post, the filing states that her monthly income is $20,950 from royalties and retirement income. However, her total monthly expenses fall into the same range at $20,940. That leaves her a surplus of only $10 each month.
Warwick’s publicist, Kevin Sasaki, said in an official statement, “In light of the magnitude of her tax liabilities, (Dionne) Warwick has repeatedly attempted to offer re-payment plans and proposals to the IRS and the California Franchise Tax Board for taxes owed. These plans were not accepted, resulting in escalating interest and penalties. Although the actual amount of back taxes owed has been paid, the resulting penalties and interest has continually accrued.”
Warwick is listing very few assests on the Chapter 7 filing, including two pairs of diamond earrings, two fur coats, gowns totaling $5,000 and 10-year-old furniture sets for her living room dining roomand bedroom.
Warwick is famous for her songs like “Walk On By,” “I Say a Little Prayer,” and “Do You Know the Way to San Jose.”