Entertainment Dionne Warwick filed for bankruptcy on March 21, with debts totaling over $10 million. Her publicist Kevin Sasaki, blames the Grammy Award-winning singer’s woes on tax liabilities she attributed to ‘financial mismanagement.’
Warwick, known for “Do You Know the Way to San Jose?” and former “Solid Gold” host, filed the petition in the U.S. Bankruptcy Court in New Jersey, the state where she was born and currently lives. NBC reports, Dionne Warwick, listed total assets of $25,500 and total liabilities of more than $10.7 million, nearly all tax claims by the Internal Revenue Service and the state of California.
The financial mismanagement reportedly occurred in the late 1980s through mid-1990s. We pray Ms. Warwick will set her financial house in order. The IRS is not an entity to take lightly. The bankruptcy filing won’t wipe out her tax debts, but will give her some time to restructure. We saw what happened to Peabo Bryson. We hope she won’t suffer a similar fate. I won’t sit in judgment of Ms. Warwick.
What I have an issue with is how Dionne Warwick allowed this to get so bad, to the tune of millions? She’s lucky the IRS didn’t come after her with criminal charges. This is a real mess. Here’s a breakdown from CNN:
The singer is down her last $1,000 in cash and only owns furniture and clothing worth $1,500, according to the Chapter 7 filing in New Jersey.
Along with $7 million in federal IRS debt, Warwick said she owes more than $3 million to the state of California in franchise taxes. Another $500,000 is owed to a lawyer and a business manager, the filing said.
Warwick’s total assets are worth just $25,500, mostly because of two fur coats and two sets of diamond earrings valued at $13,000, the documents showed. She also claimed clothing worth $5,000, art worth $5,000 and furniture valued at $15,500.
Warwick recently took a credit card debt management class, it said, perhaps relating to a $20,000 Visa debt.
Her annual income was listed at just $20,950, although she is eligible for a pension from the SAG/AFTRA union, the filing said. Warwick listed her employment with Star Girl Productions, an entertainment management company.
Dionne Warwick is proof that living the high life will ultimately come to an end when the big gigs and hit albums stop coming in. Mismanagement or not, personal responsibility plays a role. There is no reason why Ms. Warwick could not have ran up millions in IRS tax issues without knowledge at some point. This snowballed out of control. It’s a sad turn of events in this woman’s life. Um, remember her hit song, “That’s What Friends Are For?” I wonder where they are now — Elton John, Stevie Wonder and Gladys Knight. Well, Patti Labelle has her share of lawsuits to deal with…..