This news comes just one week after singer Lauryn Hill pleaded guilty to tax evasion. Hill faces prison time for failing to file her tax returns.
But Rihanna’s problems are more complex, according to a report in the NY Post today.
Court papers show Rihanna is “undergoing a costly audit by the IRS over her returns from 2008 through 2010.” And that the audit is a “direct result” of negligence by the Berdon accounting firm — which Rihanna fired in 2010.
The Manhattan federal court filing also alleges that Berdon — which Rihanna fired in 2010 — defrauded her and her Tourihanna company out of untold “tens of millions of dollars in lost revenues and profits,” by hiding the true state of her finances while charging “exorbitant and excessive” commissions that exceeded her own income.
For example, she says the firm made millions from her 2009 “Last Girl on Earth” tour, even though its “gross mismanagement” caused her to lose a bundle.
Rihanna also blames the firm for her disastrous purchase of a $6.9 million Beverly Hills mansion in 2009, saying since-retired Berdon accountant Michael Mitnick told her it “would be a good investment,” while failing “to explain the true nature of her financial situation at that time.”