Dionne Warwick Files Bankruptcy
Her soured relationship with the IRS is nothing new, but finally just may come to a close. Singer, Dionne Warwick has officially filed for Chapter 7 bankruptcy stemming from nearly two decades of owing back taxes.72 year old Warwick's attorney, Daniel Stolz, claims that her financial issues came from a business manager who "mismanaged her affairs":
“Before she knew it, she owed a gazillion dollars in taxes. She’s actually paid more than the face amount of the taxes, but with all of the crazy interest and penalties that they add, the number kept mushrooming – even though she paid off the amount that she owed in terms of the actual taxes.”
The original tax issue began in 1990, and has been a storm cloud over her head since. Several media outlets reported that back in 2009, Warwick owed $2.2 million, but the IRS revoked the claim and changed the amount to $1 million.
Reports indicate that Dionne kept up with her payments, as obligated, but the money she was paying was solely going to the penalties and interest -- not the principle.
Stolz also expressed that the debts are not only ridiculous at this point, but old:
“The taxes are of an age where under the bankruptcy code, they’re dischargeable taxes,” We’ve found that we had no other resort other than to file bankruptcy so that we could get this off her back finally.”