March 26, 2013 04:08:54 GMT
The 'I'll Never Love This Way Again' singer is left bankrupt after owing $1 million in tax lien dating back to the 1990s.
Classic singer Dionne Warwick has been forced to file for bankruptcy after being hit with $1 million tax lien. The 72-year-old singer filed for bankruptcy with the State of New Jersey on Thursday, March 21, and as a result, her assets will be protected, including a S.A.G. pension.
"Ms. Warwick had a business manager who mismanaged her affairs," her attorney Daniel Stolz says. "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," he explains.
Warwick's tax issues originated 15 years ago. In 2009, she was reportedly claimed owing $2.2 million, but the IRS revoked that claim and corrected the amount to around $1 million. Stolz says that his client has actually paid $1.3 million, more than her actual tax lien, but that money was only applied to penalties and interest, not the principle amount.
"We've found that we had no other resort other than to file bankruptcy so that we could get this off her back finally," Stolz adds. "She was an innocent victim of terrible mismanagement." He is confident that Warwick's debts will be discharged and this matter will be resolved.