DMX

Feds Allege Rapper DMX Concealed Millions From IRS

Rapper DMX has been arrested for engaging in a multi-year scheme. DMX aka as Earl Simmons allegedly tried to conceal millions of dollars of income from the IRS. The feds also clipped the rapper for avoiding paying $1.7 million of tax liabilities. DMX surrendered to law enforcement agents Thursday.

Acting U.S. Attorney Joon H. Kim said:

Earl Simmons made millions from his chart-topping songs, concert performances and television shows.  But while raking in millions from his songs, DMX didn’t give any of it to the IRS.  Far from it, DMX allegedly went out of his way to evade taxes. This included avoiding personal bank accounts, setting up accounts in other’s names and paying personal expenses largely in cash.  He even allegedly refused to tape the television show ‘Celebrity Couples Therapy’ until a properly issued check he was issued was reissued without withholding any taxes.  Celebrity rapper or not, all Americans must pay their taxes, and together with our partners at the IRS, we will pursue those who deliberately and criminally evade this basic obligation of citizenship.

IRS Special Agent in Charge James D. Robnett said:

The indictment against Mr. Simmons alleges various tax crimes, including that he failed to file personal tax returns for several years. The IRS-Criminal Investigation will continue to focus our investigative efforts on those who try to conceal their income in order to evade their taxes.

The DMX Indictment

According to the allegations in the Indictment:

Simmons aka DMX worked as a recording artist and actor.  Beginning in 1997, Simmons released a series of hip-hop albums that sold millions of records.  Many of his albums went platinum and occupied the top positions on musical charts. Simmons also has performed at venues around the world and has acted in motion pictures.

Simmons incurred federal income tax liabilities of approximately $1.7 million.  Those liabilities went unpaid, and in 2005, the IRS began efforts to collect his unpaid tax liabilities.

The IRS also alleges Simmons earned over $2.3 million 2010 through 2015. However, Simmons failed to pay personal income tax returns during that time period.  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. He also used bank accounts of nominees of his business managers to pay personal expenses.

For example, Simmons received hundreds of thousands of dollars of royalty income from his music recordings. DMX’s managers would disburse it to him in cash or used it to pay his personal expenses.

Simmons also took other steps to conceal his income from the IRS and others. The feds also allege he filed a false affidavit in U.S. Bankruptcy Court that listed his income as “unknown” for 2011 and 2012, and as $10,000 for 2013. yet, Simmons received hundreds of thousands of dollars of income in each of those years.

DMX has been plagued with financial problems for years. The foreclosure of his home in the lower Hudson Valley turned into a battle royale of his creditors