Rapper DMX pleaded guilty to more than $1 million in tax evasion Thursday in Manhattan federal court, and faces up to five years in prison.
DMX was initially charged with 14 counts of tax fraud when he was arrested back in July.
DMX, whose real name is Earl Simmons, appeared before a federal judge in NY where he has been charged in what prosecutors called a "multi-year scheme to hide millions of dollars" from the IRS.
Judge Jed Rakoff set sentencing for March 29, though the date is likely to be postponed as DMX continues rehabilitation for drug and alcohol issues.
Kim said DMX was "systematically cheating on his taxes". "By insisting to be paid in cash whenever possible and having royalty payments diverted to the accounts of financial surrogates, Simmons concealed hundreds of thousands of dollars of income from the IRS", said Joon H. Kim, who operates as the acting United States attorney for the Southern District of NY, today (Nov. 30).
"You knew you had an obligation to pay taxes, right?"
Prosecutors said the 46-year-old rapper and actor avoided taxes by living virtually only on cash, without maintaining a bank account or filing required returns to the Internal Revenue Service.
In some cases, Simmons said, he deposited money in his managers' accounts and received cash.
"He faced his responsibility, and he stood to it", said Simmons' lawyer, Murray Richman.
They alleged that he earned another US$2.3 million between 2010 and 2015 but again did not pay taxes, and even threatened to leave his position on the celebrity reality television series Couples Therapy when the payroll department deducted taxes from his checks. "I failed to file taxes".