This is really sad. One of the most renowned singers in the world is broke. Dionne Warwick filed for bankruptcy in New Jersey claiming she only had $25k in assets. But get this! She owes more than $10.2 million in taxes and fees to the IRS and the State of CA. Warwick’s rep, Kevin Sasaki, says Dionne’s financial disaster was caused by “negligent and gross financial mismanagement” in the late 1980s through mid-1990s.
According to the court docs, the 72 year old singer claims she makes $20,950 and spends $20,940. Which means her monthly net gain is TEN DOLLARS! Warwick claims she only makes $1,000 per month from music royalties. In the court documents, the 5-time Grammy winner says she’s still in possession of the following assets:
2 fur coats — 2 pair of diamond earrings — various gowns (worth $5k) — living room furniture, dining set, bedroom sets, over 10 years old. Warwick says she spends $5,000 per month on housekeeping and $4,000 per month on a personal assistant.Warwick’s rep stated, “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. These plans were not accepted, resulting in escalating interest and penalties…”
Wow, just wow! So many people think stardom equals money. But oftentimes this is not the case. Financial mismanagement can be the downfall of any wealthy person. I pray that Dionne gets some financial counseling and comes to some sort of agreement with the IRS to avoid jail time.