Taxation & Estate Planning

Rapper Young Buck's IRS Auction Cancelled

By Darrin Mish

Rapper Young Buck?s IRS Auction Cancelled

The auction of the possessions of rapper Young Buck (real name David Darnell Brown) that was scheduled for Thursday was cancelled by the IRS because he is now back under the protection of the bankruptcy court. With the cancellation, the rapper wrote on his Twitter, ?Sorry PEOPLE, there will be no AUCTION of my STUFF tomorrow!! Lol!! TRY AGAIN. HUH ????

Some of Young Buck?s possessions that were supposed to go under the hammer were a 3 foot tall Santa Claus, his gold and platinum records, a picture of Snoop Dogg with Tupac and faux-fur coats.

For now, Young Buck is back under bankruptcy protection after filing his second Chapter 13 petition just 6 days before the scheduled auction. Earlier the rapper had filed his first Chapter 13 petition in August a few days after IRS agents raided his home to confiscate thousands of dollars of assets to pay off his tax debts. But he dismissed his first filing last month.

After the second bankruptcy filing was made, Young Buck?s bankruptcy lawyers sued the Treasury Department seeking to regain possession of some $25,000 worth of assets seized. The rapper?s lawyers also corresponded with the IRS lawyers in attempts to cancel the auction. They contend that the seizure of the property (some of which belonged to his children) caused much distress to the rapper?s family and severely affected his ability to create music, which is his main means of income.

In a statement, Young Buck?s lawyers wrote, ?The forceful seizure of these objects created great stress in the home of [Brown?s] family. The seizure has also created stress within the common law marriage of [Brown] which in turn affects his ability to create and publish music. The general personal property belonging to the family is necessary for the debtor?s piece of mind to maintain calmness in order to stimulate the creative juices of [Brown].?

The rapper through his lawyers is proposing that the IRS take possession of a property that he owns worth $638,500 (with equity of $120,000) in exchange for the confiscated assets. This way, the rapper?s own living expenses will decrease thus allowing him to repay his creditors in full and the IRS can sell the property to pay off the taxes that are owed.

Young Buck contends that his last 3 years? income according to his tax returns were over-reported which resulted in his inflated tax debt. He has hired an accountant to rectify the mistakes.

Rapper Young Buck's IRS Auction Cancelled is a post from: IRS Tax Problem Solver Blog - IRS Help

Full post as published by IRS Problem Solver Blog on October 30, 2010 (boomark / email).