Rapper Buys Back His Belongings at IRS Auction

By Christina Camara

The IRS collected $53,000 last week at an auction of jewelry and recording equipment once owned by rapper Young Buck, who is now claiming that he bought back some of his former possessions.
 
For years, the IRS has been trying to collect Young Buck's tax debt of $200,000 or more. The rapper filed bankruptcy twice, hindering the effort. On the day of the auction in Nashville, July 26, the rapper logged on to Twitter and started tweeting that he bought back a fur coat and a diamond and ruby gold chain that sold for more than $12,000, the Wall Street Journal reported.
 
Horace Madison, a business manager for musicians, told NPR that tax troubles aren't confined to rappers. "It's not a hip-hop thing," said Madison, who manages Lil Wayne. "It's a music industry thing." Big stars make big money, but they have to pay their own quarterly taxes after expenses. A musician who makes $500,000 in three months should make an estimated tax payment of $200,000, he said. And what qualifies as an expense? Madison said he's tried to write off watches because his clients need a certain "look." CPAs disagreed.
 
Young Buck told MTV two years ago that he's learned his lesson. "This is a huge wake-up call for all entertainers to stay on top of your own trusted employees and team members, and replace anyone that was put in place by your record label if the situation you have goes sour."
 
Although Young Buck may have some of his possessions back, the Wall Street Journal says he'll have to part with them again very soon. He was convicted of possession of a firearm and ammunition and he's heading to prison August 19 for an eighteen-month sentence. He pleaded guilty last year.
 
Related articles:
 

You may like these other stories...

Truckers and other owners of heavy highway vehicles take note: Your next federal highway use tax return is due on September 2.The September 2 due date, which was pushed back two days because the normal August 31 deadline...
The head of the IRS has a message for taxpayers and tax preparers who have endured long wait times while on the phone with the tax agency: Call your member of Congress.During his keynote speech at the 69th Annual Meeting of...
Regulators struggle with conflicts in credit ratings and auditsThe Public Company Accounting Oversight Board (PCAOB), which was created by the Sarbanes-Oxley Act in 2002, released its third annual report on audits of...

Already a member? log in here.

Upcoming CPE Webinars

Aug 26
This webcast will include discussions of recently issued, commonly-applicable Accounting Standards Updates for non-public, non-governmental entities.
Aug 28
Excel spreadsheets are often akin to the American Wild West, where users can input anything they want into any worksheet cell. Excel's Data Validation feature allows you to restrict user inputs to selected choices, but there are many nuances to the feature that often trip users up.
Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Sep 11
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.