The latest in a string of celebrities in trouble with tax authorities is none other than rapper DMX, known for his 2003 hit “X Gon’ Give it to Ya.” DMX, whose real name is Earl Simmons, is charged with attempting to evade taxes by setting up accounts in different names, avoiding his personal checking accounts, and paying for and receiving services largely in cash. The report even declares he refused to appear on “Celebrity Couples Therapy” until he was issued a check with no IRS withholdings.
DMX’s attorney was quoted as saying his client had been charged “over the failure of others to do what [Simmons] hired them to do.” Simmons has pleaded not guilty to the charges. It is estimated the income he hid during that time period is in excess of $2 million.
This story comes in the wake of other high-profile tax cases, such as Spanish soccer stars and boxing star Floyd Mayweather, who allegedly asked the IRS for a hold on taxes due until he competes in the much anticipated bout with Connor McGregor in August. Mayweather’s tax bill is estimated at over $22 million, which should be covered by the $100 million payout he is expected to receive from the fight. The undefeated Mayweather recently tossed several thousand dollars in cash at his opponent during a press conference, which, coupled with his millions of dollars in other assets, prompted the IRS to deny his request.
The moral of the story? No one – not even the rich and famous – is exempt from the IRS and tax laws. That said, the IRS does look at facts and circumstances oftentimes to determine what can be paid, and will sometimes work with taxpayers who have limited means and have shown intent to get current on tax bills. It’s best to seek help from a qualified professional to assist if you owe back taxes or need help navigating your tax situation.
Brock Yates, CPA, MT