It has been reported that Yeezy Apparel – owned by Kanye West – owes over $600,000 in unpaid taxes. West’s company has recently received several notice letters from the State of California demanding payment. Yeezy Apparel was given payment requests in July last year, as well as follow-ups in February and September this year.
Many tax law experts have claimed that the $600,000 sum is not insignificant and could indicate deeper financial problems at the company, such as cash fhow. If West does not pay the bill soon or agree to some payment plan, a lien may be imposed, and the future of Yeezy Apparel could be put into jeopardy.
Prof. Edward McCaffery, who specialises in tax law at the USG Gould School of Law, told NBC, “Multiple California tax liens, adding up to $600,000, that’s certainly a sign of either extreme incompetence or extreme cash problems. That is kind of an Amber Alert for the financial health of the enterprise.”
Lynn LoPucki of the University of Florida used the news to question California’s tax collection policy. He said, “The state is subject to some criticism for just sitting on this when there is a going business there from which they could collect. Tax lien indicates that the state maintains that a debt is owing to the state.”
West has previously indicated that he is living under a financial strain (at least from his perspective). He told the conservative podcaster that a number of his bank accounts had been frozen with a $75 million limit and later added that he has been told by his accountants that he owes $50 million in unpaid taxes.
However, the Internal Revenue Service in America were unable to confirm if these figures are correct. They stated, “Federal law prohibits the IRS from commenting on or confirming anything related to private taxpayer matters.”