Debts owed by Kanye West are still accruing. The presidential candidate’s financial situation is getting worse rather than better, it seems. According to recent reports, among many other agencies, West also owes money to the I.R.S.
Let’s examine his current financial situation and the reasons behind why his debt looks so out of hand. The debts and financial troubles of Kanye West are not new. The music and fashion magnate has a long history of extravagant spending.
What was taking place with Kanye West following the failure of the launching of his first brand of sneakers, Pastel, and Yeezy. He was $30 million in debt in 2011 due to a failing women’s line with A.P.C. Additionally, he increased his debt by 16 million dollars when attempting to launch Yeezy in 2016.
As we all know, he eventually pulled out of all those transactions, ruining his financially in the process while encountering resistance from every door as a result of his antisemitic sentiments. West is reportedly losing money every day.as a result of multiple projects and properties failing without the huge Yeezy royalties filling his bank accounts. He is currently undergoing a lavish restoration of his Malibu home while trying to finance a presidential run, so his spending has not been helpful at all.
Not to mention that a number of the businesses he severed ties with had the power to enter his accounts and freeze the funds he had earned with them, preventing him from accessing them. That bread will be necessary for West since he has a sizable IRS obligation to pay.
He has been getting letters for approximately $600k in delinquent taxes in California for the past two years. The taxes are associated with his clothing line, Yeezy. The L.A. district attorney recently received $950,000 from the line for deceptive advertising.
According to Edward McCaffery, a tax law professor at the University of Southern California, having multiple California tax liens totaling $600,000 “is definitely a symptom of either extraordinary incompetence or extreme cash issues.” Due to unpaid rent at his Yeezy offices, he is in in danger of being evicted. According to Radar Online, West owes the Calabasas office space at least two months’ worth of rent.