MC Hammer’s story has always served as a lesson on how to not spend your money before you have actually made it. His financial troubles have been dragging on for years and it looks like it won’t be over any time soon
In 2012, the IRS contacted the “Can’t Touch This” singer and told him he owed them about $800,000 in back taxes.
In papers filed in court at the time, the IRS named Hammer (real name Stanley K. Burrell) and his wife Stephanie as the accused and claimed they needed to cough up $798,033.48 in income taxes owed for the years 1996 and 1997. They want every red cent he makes from now on to go into paying off the debt.
The suit couldn’t have come at a worse time for the rapper who has long-parted with his days of fame.
Hammer had no choice but to fight back, albeit unsuccessfully it should be said – because an appeals court has just thrown out his defense and says he has to pay up. The rapper had claimed that it was not fair he had to pay the amount, plus penalties, when he had already paid it as part of his bankruptcy.
The IRS counter claimed that Hammer hadn’t seemed to comprehend the fact that what they were making a claim for was the unpaid taxes for the years 1996 and 1997 – and not for the years which he had indeed settled via bankruptcy: 1993, 1994 and 1995.
Court documents showed the case against the couple and stated “…holding the Defendants accountable for their unpaid taxes will not cause serious injustice. Defendants’ counsel told the bankrup
tcy court in 1998 that Defendants were aware of the 1996 and 1997 tax liabilities and that they had worked out separate post-bankruptcy payment plan with the government.
“Counsel also represented to the bankruptcy court that the 1996 and 1997 taxes, which would be paid later, would not have a negative effect on payments to unsecured creditors.”
The court “Affirmed” it – and thus decided Hammer needs to pay up.