Kanye West’s Yeezy Clothing Reportedly Owes California $600k In Unpaid Taxes

Kanye West

Kanye West’s Yeezy Clothing Reportedly Owes California $600k In Unpaid Taxes

Kanye West’s troubles continue to grow.

Government records reportedly revealed that one of Kanye West’s businesses may be dealing with some major debt issues.

According to reports, a series of state tax lien notices show that Kanye “Ye” West’s fashion brand Yeezy Apparel owes California over $600,000 in foregone taxes. In July of 2021, three separate notice letters were allegedly sent to the rapper, as well as in February and in September.

Kanye West

The alleged debt isn’t the only drama surrounding Kanye West’s businesses, which have been making headlines in recent weeks. As previously reported, West was removed from Forbes’ list of billionaires after Adidas, Balenciaga, and more terminated their partnership with the rapper due to his antisemitic remarks.

Tax law specialist Edward McCaffery, who is a professor at the USC Gould School of Law, said that the amount owed by Yeezy Apparel is significant and could bring trouble to the company. 

“Multiple California tax liens, adding up to $600,000, that’s certainly a sign of either extreme incompetence or extreme cash problems,” 

Professor McCaffery added:

 “That is kind of an Amber Alert for the financial health of the enterprise.”

Kanye West

The state of California’s government website states that a lien may be imposed if a company or taxpayer doesn’t reply to their letters about taxes owed, pay in full, or set up a payment plan. Since 2017 the fashion brand has been operating in California and was documented as being active and in “good” standing in an annual filing in January. Yeezy Apparel is one of five active Yeezy limited liability corporations in California managed by West.

Three years ago it was reported that West owned 100 percent of Yeezy. In 2020, Yeezy took over $2.3 million in Paycheck Protection Program loans. Lynn LoPucki, a professor of law at the University of Florida who is a professional in secured transactions and bankruptcy research, said the liens also raise questions about California’s debt collection policies. He explained:

“The state is subject to some criticism for just sitting on this when there is a going business there from which they could collect.” 

 On Monday (Dec. 5), the “Good Life” rapper was candid about the financial chaos he’s seemingly facing during a chat with far-right podcast host Tim Pool. The entertainer reportedly shared that four of his bank accounts had been frozen on a $75 million hold and that his accountants revealed he owes $50 million in taxes.

Kanye West

What are your thoughts on Kanye West’s updated debt? Tell us below.

[VIA]