US rap star DMX – real name Earl Simmons – has been arrested on 14 counts of tax fraud and faces allegation he hid millions of dollars of income from the Internal Revenue Service (IRS) to avoid paying $1.7m (£1.3m) of tax liabilities
Simmons has pleaded not guilty in his first appearance in court in New York, and after a night in prison has posted a $500,000 bond and is now released.
According to papers presented to the Manhattan federal court, Simmons failed to pay tax due on his earning as a recording artist, performer, and actor from 2002 to 2005, when the IRS began efforts to claim the money.
During the period from 2010 to 2015, the documents allege Simmons earned over $2.3m but did not file any personal income tax returns. Instead, ‘he orchestrated a scheme to evade payment of his outstanding tax liabilities, largely by maintaining a cash lifestyle, avoiding the use of a personal bank account, and using the bank accounts of nominees, including his business managers, to pay personal expenses’.
Simmons is said to have received hundreds of thousands of dollars of royalty income from his music recordings, which he caused to be deposited into the bank accounts of his managers, who then disbursed it to him in cash or used it to pay his personal expenses.
The rap star also participated in the ‘Celebrity Couples Therapy’ television show in 2011 and 2012 and was paid $125,000 for his participation. When taxes were withheld from the check for the first instalment of that fee by the producer, Simmons refused to tape the remainder of the television show until the check was reissued without withholding taxes.
In addition, the papers allege Simmons took other steps to conceal his income from the IRS and others, including by filing a false affidavit in US Bankruptcy Court that listed his income as ‘unknown’ for 2011 and 2012, and as $10,000 for 2013. In fact, Simmons received hundreds of thousands of dollars of income in each of those years.
Joon Kim, acting US attorney for the southern District of New York, said: ‘For years, Earl Simmons, the recording artist and performer known as DMX, made millions from his chart-topping songs, concert performances and television shows.
‘But while raking in millions from his songs, including his 2003 hit “X Gon’ Give it to Ya,” DMX didn’t give any of it to the IRS.’
Simmons now faces 14 counts: one count of corruptly endeavouring to obstruct and impede the due administration of internal revenue laws, one count of evasion of payment of income taxes, six counts of evasion of assessment of income tax liability, and six counts of failure to file a US individual income tax return.
Simmons has been approached for comment.
