Dionne Warwick files for bankruptcy: Singer owes $10 million in taxes
Dionne Warwick is in some pretty dire straights. It's being reported that the singer has filed for bankruptcy in New Jersey and owes millions in taxes.
Reuters reports that Warwick owes $10.7 million total in taxes to the state of California and the IRS. According to what her representative told TMZ, this was caused by "negligent and gross financial mismanagement" in the late 1980s to mid-1990s. Warwick claims she only has $25,000 total in assets.
"In light of the magnitude of her tax liabilities, Warwick has repeatedly attempted to offer re-payment plans and proposals to the IRS and the California Franchise Tax Board for taxes owed," Warwick's rep said. "These plans were not accepted, resulting in escalating interest and penalties."
The 72-year-old singer says her monthly income is $20,950, but she has to spend $20,940 of it each month. According to her claim, Warwick only makes $12,000 a year from her music royalties.