Celebrity news outlets are not just reporting on divorces and custody battles these days. A number of financial dramas are playing out in the entertainment industry, and some big names have been hit with state and federal tax liens. In a few cases, the tax debts are tied to divorces and child support payments.
Locally, the Georgia Department of Revenue has filed a tax lien against singer-producer The-Dream. At issue is the 34-year-old's tax bill from 2007, when The-Dream reportedly didn't pay about $60,500 in income taxes. Interest has accrued and fees have accumulated over the past few years, and The-Dream now owes more than $117,000.
The debt surprises some, because the artist produced a song for Rihanna, "Umbrella," that earned him $15 million. The-Dream does have two ex-wives and four children, though, and tabloids speculate that most of his earnings go to them.
Perhaps coincidentally, Jermaine Dupri, a big name in hip-hop, also failed to pay his 2007 income tax bill. According to documents filed with the Georgia Department of Revenue, the original tax bill totaled about $255,000. When he finally cleared the lien last year, he had paid, approximately, $92,000 in interest and a $65,000 penalty, about $82,000 in collection fees, and another $50 in costs. The total came to almost $495,000.
Dupri had other problems last year. His Atlanta mansion went into foreclosure, and his Lamborghini was repossessed. While the mansion escaped the auction block (for undisclosed reasons), the lender for the car sold it for $115,000 (Dupri was about $80,000 behind) and proceeded to press Dupri to pay back what he still owed.
It isn't clear how Dupri paid off his debt. He may have had a windfall; he may have tightened his belt considerably; or he may have sought the advice of a debt management and foreclosure prevention professional. Perhaps he can help The-Dream figure out what his next steps should be.
Sources:
Ballerstatus.com, "Jermaine Dupri Pays Off Massive Tax Debt," Allen Starbury, Jan. 9, 2012
RollingOut.com, "The-Dream Owes Uncle Sam $100K," Nicholas Robinson, Jan. 17, 2012
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