CELEBRITIES
Lil’ Kim clears IRS tax debt of over $1 million
After a lengthy battle with the IRS, the final bill has been paid on the taxes owed to the IRS by Lil’ Kim.
Nearly two decades have passed since Brooklyn legend Lil’ Kim had issues with the IRS. The federal government no longer has a hold over the rapper’s assets now that her debt is cleared.
Court documents obtained by a source tell us that Lil’ Kim, whose real name is Kimberly Denise Jones, reached an agreement with the federal tax agency for nearly $1.4 million.
The largest tax bill Lil’ Kim reportedly owed was incurred in 2008 when the former Junior M.A.F.I.A. rapper owed close to $400,000 to Uncle Sam.
Tax debt accumulation through the years
Some of the tax debt Lil’ Kim has finally paid back even dates back to early 2003. According to the IRS, Lil’ Kim was not paying her taxes since 2010 and was served a $127,000 bill in December 2014 at the age of 39.
Then, in June 2018, Lil’ Kim reportedly filed for Chapter 13 bankruptcy. This type of bankruptcy, which is sometimes also known as the “wage-earners bankruptcy,” is a type of bankruptcy that allows the debtor to catch up on their financial obligations.
In the documents, the Hip Hop star claimed to have assets totaling $2,573,300 and liabilities in the amount of $4,084,841.60. She also owed $1,845,451 in back taxes.
Although Kim reportedly pulled in $18,286 a month at the time, her bills ran her $12,794 a month, leaving her with roughly $5,000 per month. The docs revealed Kim had made $90,678 up to that point in 2018, $398,000 in 2017, and $823,659 in 2016.
By the summer of 2019, Lil’ Kim’s bankruptcy case was granted to be dismissed. “I remain committed to saving my home and reorganizing my debts,” she wrote in the filing. It also noted that she had borrowed $25,000 from Missy Elliott.
Her largest debts included $2 million owed on her New Jersey home, $1,469,105 in unpaid federal taxes from 2004-2017, $376,346.74 owed to the New Jersey Division of Taxation for unpaid taxes from 2004-2017, and $186,000 in unpaid legal bills.
Finally, the rapper is cleared of all past debts and can continue her life without the constant burden.