Singer Dionne Warwick files for bankruptcy

Written By Unknown on Selasa, 26 Maret 2013 | 23.08

(Reuters) - Grammy Award-winning singer Dionne Warwick has filed for bankruptcy in New Jersey, citing tax liabilities she has attributed to financial mismanagement, her publicist said on Monday.

Warwick, 72, known for "Do You Know the Way to San Jose?" and other popular songs, filed the petition on March 21 in the U.S. Bankruptcy Court in New Jersey, the state where she was born and currently lives. She 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, according to the filing.

The personal bankruptcy filing was due to "negligent and gross financial mismanagement" in the late 1980s through mid-1990s, Warwick's publicist, Kevin Sasaki, said in a statement.

The IRS and California tax claims total more than $10.2 million, mostly from the 1990s, according to the petition, which listed Warwick's average monthly income as $20,950 and expenses at $20,940.

Sasaki said the actual back taxes owed had already been paid, but the penalties and interest has 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 the California Franchise Tax Board for taxes owed," Sasaki said. "These plans were not accepted, resulting in escalating interest and penalties."

A five-time Grammy winner, Warwick took her first in 1968 for "Do You Know the Way to San Jose?" and her second two years later for the album "I'll Never Fall in Love Again."

(Reporting by David Bailey in Minneapolis; Editing by Lisa Shumaker)


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