Singing legend Dionne Warwick is filing for bankruptcy in New Jersey because she owes more than $10 million in unpaid taxes, the website TMZ.com reported on Tuesday. The filing, TMZ reported, claims the singer only had about $25,000 in assets, "but owes more than $10.2 million in taxes and fees to the IRS" and the state of California.
TMZ broke it down even further, saying the court documents show that the singer only takes home $10 a month. Why? Because she earns $20,950 during each month but spends $20,940, leaving her with all of $10. Among her expenses are spending $5,000 a month on housekeeping and $4,000 a month on a personal assistant.
And if you though a big chunk of that money came from music royalties, you're wrong. The site reported that Warwick is claiming to only make $1,000 a month off of music royalties. Warwick was among the biggest singing stars of her era, often singing songs written by Burt Bacharach and Hal David. Warwick had 56 singles make the Billboard Hot 100.
The New York Daily news reported that all the singer has in cash right now is about $1,000, various pieces of furniture, clothes, some artwork, two fur coats and two pairs of diamond earrings.
"The vast majority of her debt is $10.2 million in tax claims from the IRS and the state of California," The Daily New reported. "She also owes a former manager about $500,000, and ran up a $20,000 Visa card debt, court papers showed."
Representation for Warwick gave this statement to TMZ: "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. These plans were not accepted, resulting in escalating interest and penalties."
