'Say a Little Prayer' Singer Dionne Warwick's $7M IRS Battle Centered on Her Bankruptcy Dismissed
Legendary singer Dionne Warwick will most likely be relieved after her drawn-out $7 million legal battle with the IRS was recently dismissed.
The Blast, which reported the story, obtained court documents showing that Warwick and the IRS have informed the court that they’re dropping their respective lawsuits.
The “Say a Little Prayer” singer had been facing off with the government for years over allegations of millions owed. She reportedly believed the debt was discharged in her bankruptcy several years ago.
Despite Warwick filing for bankruptcy in 2013, the IRS believed her debt was valid and continued to demand it even after the singer sued them.
When Warwick, 78, filed for bankruptcy six years ago, she reportedly listed assets to the tune of $25,500 while her liabilities totaled $10,727,429, more than 400 times her assets.
Still To Come: The IRS and Warwick’s case was slated for trial on March 6, 2019, and both sides were expected to state their case
Warwick, who blamed a business manager for her financial plight, had mostly tax-related debts spread across years and amounting to $6,964,466.87.
The "Don't Make Me Over" singer reportedly sought a court order discharging the $7 million tax debt from 1990 – 2008 and an injunction preventing the IRS from seizing her assets. Although the debt was discharged in Warwick’s bankruptcy, the government contested the discharge.
Warwick also once accused the IRS of violating a court order when they tried to seize her assets over alleged unpaid taxes of $71,408 for 2011-2012. The six-time Grammy winner requested that they are penalized for ignoring the judge’s order to leave her money until the outcome of the case.
The government reportedly argued that they discovered Warwick’s $71,000 debt only because she allegedly failed to report income on her returns.
The IRS and Warwick’s case was slated for trial on March 6, 2019, and both sides were expected to state their case. The government shutdown at the time, however, meant the trial could not hold and was postponed.
Now that the case has been dismissed, Warwick can heave a sigh of relief as this signals the need of her legal battle with the IRS.