By Dr. Sinclair N. Grey III
Let’s face it – when entertainers make their millions, many of them take on poor financial habits. The need to acquire stuff seems to take over and the need to save and invest is overlooked and neglected. With all of the hard work entertainers commit to perfecting their craft, it’s devastating to read about them squandering their wealth. (Note: not all entertainers fall into the bankruptcy tap. In addition to that, not all entertainers fall into the grips of the Internal Revenue Service).
No matter how much money one makes, the IRS wants you to pay taxes. It doesn’t matter how well someone sings or dances, at the end of the year, taxes have to be paid. Failure to pay taxes can lead to hefty fines being imposed and even in some cases, imprisonment.
Case in point – rapper DMX whose real name is Earl Simmons is in trouble with the IRS. According to a story reported by TMZ, “The U.S. Attorney’s Office in NYC says DMX has concealed his income for several years and is now about $1.7 million in the red to the IRS. According to the indictment, X had cash pouring in during the early 2000s from a slew of hits. The feds even name checked “X Gon’ Give It to Ya” in the docs.”
The IRS alleges that DMX was using cash to live on instead of using a personal bank account. Not only was he using cash, but he set up surrogates including his business manager.
When DMX appeared on the show ‘Couples Therapy’ he was supposed to be paid $125,000. Well, when he got his money, taxes were deducted. Instead of going with the flow, DMX got upset and made the producers issue a new check without any taxes deducted.
“In the indictment, prosecutors say he listed his income in 2011 and 2012 as ‘unknown’ … when in reality he’d made $353k and $542k, respectively. In 2013, he finally did report income … of $10k. That number was a little off, according to feds, who say he actually hauled in $250k that year.”
If indicted, DMX would face 44 years in federal lockup.
Note: DMX pleaded not guilty in federal court on Friday and was released on $500,000 bond.
Dr. Sinclair N. Grey III is a speaker, author, and success coach. Contact him at www.sinclairgrey.org firstname.lastname@example.org or on Twitter @drsinclairgrey.org