Dionne Warwick has filed for bankruptcy because of tax debts of around $10.7 million
The 72-year-old singer has filed papers in New Jersey because of $10.7 million tax debts to the Internal Revenue Service (IRS) and State of California, which stretch back over 20 years.
In the documents, Dionne has cited tax liabilities – which mostly date from the 1990s – attributed to financial mismanagement and listed her total assets as just $22,500.
The ‘Do You Know The Way To San Jose?’ singer’s publicist Kevin Sasaki claimed the debt was due to “negligent and gross financial mismanagement” and that the back taxes owed had been paid, but interest had continued to accrue.
He added: “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.”
The petition was filed in the US Bankruptcy Court on March 21 and list the Grammy-award winning star’s average monthly income as $20,950 and expenses at $20,940.