Dionne Warwick Files For Bankruptcy
Apparently Warwick’s tax liabilities resulted in the bankruptcy, a problem she attributes to financial mismanagement. Filing in U.S. Bankruptcy court in New Jersey where she lives, Warwick listed total assets of $25,500 and total liabilities of more than $10.7 million, according to Reuters, which reports the tax claims come from the IRS and the state of California.
How much does Warwick owe in taxes? More than $10.2 million, mostly from the 1990s, reports Reuters. Meanwhile, Warwick publicist Kevin Sasaki issued a statement attributing Warwick’s money problems to “negligent and gross financial mismanagement” during the late 1980s through mid-1990s.
Warwick did infomercials during the 1990s for the Psychic Friends Hotline. Too bad her psychic friends didn’t warn her about going bankrupt in 2013.
The publicist also said Warwick had paid the back taxes but penalties and interest continued to accrue.
“In light of the magnitude of her tax liabilities, Warwick has repeatedly attempted to offer re-payment plans and proposals to the IRS and California Franchise Tax Board for taxes owed,” Sasaki said. “These plans were not accepted, resulting in escalating interest and penalties.”
It may take Warwick some time to pay off her tax debt. Her bankruptcy filing lists her average monthly income as $20,950 while her expenses are $20,940.