Musician MC Hammer was famous in the 1990s for a few hit songs and subsequent serious financial troubles, exposing the unsustainable nature of the conspicuous consumption of many in the music industry. Now he is back in news as the IRS pursues a tax debt that amounts to nearly $800,000.

The tax debt dates back to 1996 and 1997, well after his hit song "2 Legit 2 Quit" hit airwaves. The singer contests the debt, saying that he has already paid all of the taxes that he owes the United States government. He refuted the allegations of unpaid taxes via Twitter, telling fans that he had already come to an agreement with the IRS and had fully paid any past-due taxes.

It is not uncommon for taxpayers and the IRS to disagree about how much is owed and what to do to resolve tax debts. When this happens, many taxpayers find it valuable to seek help from an experienced advocate who is well versed in tax law to make sure that their rights are accurately represented.

In this case the former Billboard Hot 100 chart-topper will likely need to submit extensive documentation to prove that he does not owe any further debt to the Internal Revenue Service. Alternatively, if the IRS proves that he does still owe them money on income earned in 1996 and/or 1997, then he will need to create a payment plan to resolve the debt. He has faced other tax liens in the past which have been resolved.

Source: Contact Music, “MC Hammer Insists New Tax Suit is Already Settled,” Dec 10, 2013.