DMX Pleads Guilty to Fraud, Concealing Millions From the IRS
Apparently, X didn’t give it to the IRS. The rapper pleaded guilty to tax fraud Thursday for concealing millions of dollars in income to avoid paying $1.7 million in taxes, according to the AP. DMX, aka Earl Simmons, faces up to 5 years in prison when he is sentenced in March, although the AP says that date is likely to be postponed as X is currently recovering from drug and alcohol issues in rehab.
AP — Authorities said the IRS had been pursuing DMX since at least 2005, when the agency realized he had managed to evade paying $1.7 million in taxes on millions of dollars in income he amassed from 2002 through 2005 as his hip-hop records sold millions.
Prosecutors said in a release that DMX also did not file tax returns from 2010 through 2015, when he evaded paying taxes by maintaining a cash lifestyle, avoiding use of a personal bank account and paying bills through money put in the bank accounts of others.
They said he deposited hundreds of thousands of dollars in royalty income from music recordings into the bank accounts of his managers, who gave him cash. The government said he also participated in a “Celebrity Couples Therapy” television show in 2011 and 2012 in exchange for $125,000, but refused to participate for a time until the producer agreed to provide paychecks without withholding taxes.
Prosecutors said DMX also filed a false affidavit in U.S. Bankruptcy Court listing his income as “unknown” for 2011 and 2012 and as $10,000 for 2013, even though he made hundreds of thousands of dollars in income during those years.
Basically, DMX has been living a “cash lifestyle” for over a decade to prevent the IRS from learning how much money he’s making from royalties and other income sources. According to the Daily Mail, when he filed for a third bankruptcy in 2009 he claimed he didn’t own any assets except his home.
Simmons claimed he does not own any automobiles, furniture, household goods, electronics or guns, jewelry or clothing ‘worth anything.’
The Party Up singer also claimed that he doesn’t own stake in copyrights or trademarks for any of his music for over a decade of his career.
He listed his Mount Kisco, NY home as his only asset, worth an estimated $350k.
DMX funneled his royalty payments into friends’ bank accounts and payed his bills using their accounts or cash — although, he still ended up owing his creditors nearly $2 million, including an astounding $1.3 million in child support owed to the 10 children he’s fathered. Meanwhile, while the rapper wasn’t reporting an income to the IRS, ‘X Gon’ Give It To Ya’ was being licensed for KFC commercials and Deadpool, which isn’t suspicious at all.
In court Thursday, X stated, “I’m responsible. … I failed to file taxes.”
According to DMX’s attorney, Murray Richman, “he’s of the opinion that he’s guilty because he didn’t properly supervise his own life. He gave the responsibility of paying his taxes to others but he knows it was his responsibility. He’s owning up to it at this particular point.”