Pop star Rihanna is in trouble with the IRS after failing to pay taxes, and she’s blaming her former accountants. A suit filed by the pop star reveals she’s currently undergoing a costly audit by the IRS over her returns from 2008 through 2010.
Court papers say the audit is the “direct result” of negligence by the Berdon accounting firm, which was hired to manage the singer’s money after she was discovered at age 16 and embarked on her chart-topping career.
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.”