Lil’ Kim has reportedly settled her decades-long beef with the IRS, coming to a settlement arrangement totaling nearly $1.4million when all is said and done.
Court documents obtained by Radar Online reveal that the Brooklyn legend (real name Kimberly Denise Jones) came to a settlement agreement with the federal tax agency.
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The exact details of the settlement weren’t released, and neither was the date of the tax debt discharge. However, the outlet reports that $1.38million in tax debt was discharged from Lil’ Kim’s name.
What’s more, the discharging of the tax debt — some of which dates all the way back to 2003 — means that the federal government no longer has a lien on “The Jump Off” rapper’s properties.
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The largest tax bill that 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.
While Lil’ Kim is now free from her tax debts, things weren’t always so easy.
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The rapper’s first issues with the IRS cropped up in December 2014 when the federal government filed a lien against the then-39-year-old rapper for nearly $127,000. According to the IRS, Lil’ Kim hadn’t paid taxes since 2010, thus necessitating the need for the lien.
This lien was also discharged in the 2023 current settlement.
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Then, in June 2018, Lil’ Kim also 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 vet claimed to have had 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.
Queen Bee’s largest debts included $2million 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.
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The “Crush On You” rapper offered to pay her creditors $5,500 every month for the following five years and said she’d sell her New Jersey home to repay her debts. That offer, however, was denied.
But just one year later, in July 2019, Lil’ Kim requested her Chapter 13 case be dismissed because she’d gotten her finances back in order thanks to a loan modification on her New Jersey home, thus removing the need for the Chapter 13 protections from her creditors.
The request for dismissal, according to Yahoo!, was granted.
