On Feb. 2, 1993, Willie Nelson settled an $11 million tax bill with the IRS — one of the most high-profile tax cases in music history.
What Caused Willie Nelson’s Tax Problems?
The trouble began when the IRS decided that tax shelters Nelson’s accountants had set up were not valid, levying massive fines and penalties on top of the original unpaid amount.
Nelson’s lawyers negotiated the massive bill and penalties down to $6.7 million, and a judge signed off on that deal on June 6, 1990.
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Why Was Willie Nelson’s Property Auctioned Off?
However, the government still seized much of Nelson’s property and sold it at auction.
Fortunately, friends and supporters bought a lot of Nelson’ property at auction and gave it right back to him, in recognition of his own generosity to others over the years.
Nelson then released an album titled The IRS Tapes: Who Will Buy My Memories? It’s not generally remembered as his finest project, but the profits also helped him get back on his feet.
“We try to work with taxpayers,” the IRS explained of the unusual agreement. “And if we have to come up with some creative payment plan, that’s what we’re going to do, because it’s in everyone’s best interest.”
The country music legend finished paying off his debts in 1993.
In 2006, Nelson poked fun at his tax troubles in a hilarious commercial for H&R Block, which aired during Super Bowl XXXVIII.
30 Pictures of a Young Willie Nelson
Willie Nelson began his music career in the late 1960s. Back then he wasn’t the typical country artist from Nashville — he was considered an outlaw.
Take a look back to his early years, and see photos of a young Willie Nelson that you may have ever seen before.
Gallery Credit: Evan Paul
