Dionne Warwick is an American singer and actress with a net worth of -$10 million. Dionne filed for bankruptcy on March 21st in New Jersey after discovering that she owed more than 10.2 million in taxes. According to her publicist Kevin Sasaki, the legendary singer cited fiscal mismanagement as the main reason she owed so much to the point of being broke. Dionne believes that most of the supposed negligent and gross financial mismanagement occurred in the late 1980s through the 1990s when she was still active career-wise.
Dionne Warwick listed her average monthly income as being just $20,950, with expenses totaling $20,940. As Sasaki puts it, Dionne had reportedly paid back her taxes and that what she owed amounted to interest that accrued on those taxes. Sasaki said that when the authorities notified her about the extent of her tax liabilities, she repeatedly attempted to offer re-payment plans and proposals to the IRS and the California Franchise Tax Board for taxes owed. They however rejected these plans which resulted into escalating interest and penalties.
Dionne Warwick’s bankruptcy counselor Dan Stolz, also confirmed that she owed an accumulated amount worth $10 million. Stolz said that this was as a result of payments Dionne made over the years which were then applied to interest and penalties instead of the principal amount. He stated that Warwick should expect no trouble to emerge from her current situation. This is because congressional bankruptcy codes allow for the discharge of income taxes that are more than 3 years old.
According to Stolz, Dionne Warwick’s predicament was caused by a bad business manager who ran her into debt but was fired several years back. There were also reports that the IRS had lost Dionne Warwick’s files for several years. The same IRS stated in 2009 that Dionne owed $1 million and according to Stolz, the legendary singer had already paid about $1.3 million over the years which is more than what she owes in tax.
Of course Dionne Warwick isn’t the only celebrity plagued by money problems. Renowned celebrities like Mike Tyson and Toni Braxton have also declared bankruptcy. Many other celebrities have also experienced some sort of financial woes.
Dionne’s Past and Rise to Stardom
Born in East Orange, New Jersey, U.S Dionne Warwick originally attained stardom status as both a singer and songwriter. She also had a long-lasting partnership with Burt Bacharach and Hal David. Apart from her singing career, Dionne also served as the United Nations Global Ambassador for the Food and Agriculture Organization (FAO) and as a United States Ambassador of Health. According to the Billboard Hot 100 Pop Singles Charts, she was one of the 40 biggest hit makers of the entire rock era (1955–1999). Dionne Warwick is second only to Aretha Franklin as the female singer with the most singles on the Billboard Hot 100 chart. She has won 5 Grammys, including awards for hits such as Do You Know the Way to San José, That’s What Friends Are For and I’ll Never Fall in Love Again. In That’s What Friends Are For, she featured Stevie Wonder, John and Gladys Knight. Other popular hits she released include Raindrops Keep Falling on My Head and The Look of Love.
Click here for a full write-up of Dionne Warwick’s Biography.