Do Rappers Pay Taxes?

There is this notion from a lot of people that a lot of celebrities including successful rappers don’t pay taxes. This notion is understandable seeing that the majority of people think that celebrities are above the law and can somehow avoid paying taxes all together. This article will address if it’s true about rappers avoiding paying taxes, and if so how.

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Do Rappers Pay Taxes?

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The answer is yes! Rappers have to pay taxes on all their income. The tax laws state that all income made by citizens of the U.S. has to be reported to the government so it can be taxed accordingly. If they don’t report any income for the year or don’t report the right amount the government will send them a notice to pay up.

If that is ignored IRS agents will show up to their homes to try and collect the funds or come up with a payment plan. If no one is home at the times they show up or if they’re not contacted within reasonable time, a judge can issue a warrant for their arrest for avoiding paying taxes.

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Do Rappers Pay Taxes on Show Money?

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Yes. Rappers have to pay taxes on performance/show money. As stated earlier all income from Citizens of America are obligated by the tax law to pay taxes on ALL income they generate. So that also means show money, album sales, merchandise money, licensing money etc. All income a rapper makes is taxed.

You may have heard a lot of rappers complain about the government taking half of their money due to taxes. This is just how the government works. As the saying goes there are only two things promised in life; taxes and death!

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How Are Taxes Used? Where Do Taxes Go?

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The taxes you pay go directly to the government to fund or pay for essential things within your city and country. These things include:

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• The Police
• The Fire Department
• Schools
• Roads
• Highways
• Social Assistance (for those who need it)

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And a few more things. So paying taxes is a good thing to maintain our society.

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Rappers who committed tax evasion and got into some serious trouble including major fines:

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Snoop Dogg
Method Man
Lil Wayne
Bow Wow
Beanie Sigel
Nas
Young Buck
Dame Dash
Swizz Beatz
DMX
Jermaine Dupree
Mc Hammer
Ja Rule
Lil Kim
Master P
Tyga
Fat Joe

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And the list goes on and on. There are several reasons why rappers don’t pay taxes. one reason is that they really don’t want to pay taxes. Those in a high tax bracket really do have to pay more than everyone else. A second reason is that they trust business partners, accountants and managers to handle the paying of all their bills, and sometimes these individuals miss a payment.  That’s why it is always said to rappers that they should pay more attention to their finances. But it is understandable if they’re not able to because of the hectic schedule.

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One thing some rappers will do is think that it’s a smart idea to not report all their income to the feds. This is a form of tax evasion and it does come back to bite them in the ass. The IRS pays very close attention to your income and information reported to them by individuals and companies that claim they have paid you. This is for their tax purposes. So the best thing would be for them to report all income and not try to hide how much they really made for the fiscal year.