IRS SOS! Rihanna Sues Tax Accountants After Losing 'Tens Of Millions Of Dollars'
July 5 2012, Published 2:30 p.m. ET
Rihanna is so Disturbia by the actions of her former tax accountants that she has filed a lawsuit against them, claiming their negligence cost her millions of dollars and got her into trouble with Uncle Sam.
The 24-year-old is currently being audited by the IRS over her 2008 to 2010 tax returns and the Barbados-born pop princess claims in her court papers that it as a “direct result” of Berdon accounting firm’s actions.
In this week's legal filing in Manhattan federal court, Rihanna alleges that Berdon defrauded her and her company Tourihanna out of “tens of millions of dollars in lost revenues and profits.
The New York Post reports that the company was charging the Umbrella star “exorbitant and excessive” commissions that surpassed her own income while hiding the true extent of her financial mess.
Rihanna claims that Berdon’s “improper financial arrangement” paid itself 23 percent of her total income from the Last Girl on Earth tour, while she only scraped in 6 percent.
"Between 2005 and 2010, Tourihanna suffered significant losses due to defendants' financial mismanagement and other acts and omissions," the lawsuit states.
Rihanna was introduced to Berdon by her music management company when she was a fresh-faced 16-year-old and “a minor with a booming music career and no knowledge or understanding of financial matters whatsoever.”
Another grievance is Rihanna’s disastrous purchase of a $6.9 million Beverly Hills home back in 2009, which she was apparently told by former Berdon accountant Michael Mitnick would be a “good investment.”
But what he failed to tell Rih-Rih was that her finances were a total mess and it wasn’t such a good time to be shelling out on a lavish house.
Also it turns out it was a dud deal because the eight-bedroom house had extensive water damage and she had to unload it in February for nearly $2 million less than what she paid for it and never moved in.
Rihanna fired the accountancy company in 2010 and is now seeking unspecified damages from Berdon, Mitnick and another account, Peter Gounis.
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Rihanna is not the only one facing tax issues, Lauryn Hill recently pleaded guilty to not filing tax returns for three years and faces a jail sentence if convicted.
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