“Don’t Make Me Over” may have been the title of Dionne Warwick’s first solo single in 1962, but now she is asking the United States Bankruptcy Court to make her over. The award-winning artist originally declared bankruptcy in March 2013.
On Tuesday, March 18, 2014, a bankruptcy trustee requested that Ms. Warwick’s outstanding tax debt of more than $10 million be forgiven. Bankruptcy documents show that she owes approximately $7 million in federal IRS debt and $3 million to the state of California.
The trustee is also recommending that Ms. Warwick be allowed to keep her personal property including fur coats and diamond rings valued at about $13,000. She would also keep some personal artwork, other personal property, and approximately $1,000 in cash.
According to her publicist, Kevin Sasaki, Warwick recognized the need to file personal bankruptcy due to gross financial mismanagement dating back more than 20 years and the current magnitude of her tax debt. He went on to explain that, while the back taxes have been paid, the resulting interest and penalties have continued to accrue.
A bankruptcy court judge must now make a ruling on the bankruptcy trustee’s recommendations.
If you have outstanding tax debt in Oklahoma, it is important to understand your rights, possible solutions to your tax problems, and whether bankruptcy is a viable option for you. To find out more about resolving tax debt, we invite you to peruse our web site and watch our free videos to find out more about alternative solutions to IRS tax problems.