Saturday, March 8, 2008


If Yolanda don't get her (financial) affairs in order, she's going to find herself in a hallelujah hell storm; whatever that means. LOL! According to the Houston Chronicle the Internal Revenue Service is investigating the gospel star and radio host. The agency has asked a federal judge to force the entertainer to turn over documents after she failed to show up for an appointment last month to explain her financial affairs. The agency is trying to determine her tax liability and how to collect on the debt. According to filings in Houston federal court, the IRS probe stems from two million-dollar mortgage loan applications. A 2005 Ocwen application said Adams earned $40,000 a month and listed $8 million in assets — including an $800,000 trust account, $4.9 million in other personal holdings and jewelry worth $1.5 million. That document said she owned a Lexus and a Hummer. A subsequent Chase home loan application listed $3 million in assets, including a business worth $1.5 million, a Mercedes-Benz and a Range Rover. She owns a home worth more than $2 million in Houston's Royal Oaks Country Club subdivision. The agency also wants details about her endorsements and royalties as well as music companies and foundations with whom she is affiliated.

Houston entertainment lawyer Ricky Anderson, who represents Adams, said Wednesday that he was unaware of the lawsuit and declined to comment until he could look at the IRS filings and reach Adams, who is featured on a gospel cruise to the Bahamas this week. According to court documents filed Tuesday, a revenue officer who works cases involving small businesses and the self-employed is looking into Adams' taxes for 2000, 2001, 2003 and 2004. In January, the agency issued a summons that required Adams, 46, to bring financial documents for the last six years to Houston's IRS office and answer questions. At the appointed hour, 9 a.m. Feb. 5, Adams would have been on the air hosting her Houston-based radio show.


The federal government has asked a judge to order Adams to appear with "records, papers or documents" or explain why she should not be forced to comply with the summons. Richard Alderman, an associate dean at the University of Houston Law Center, said the IRS issues a summons to ascertain how a taxpayer accumulated assets. "They believe that somebody has either overreported deductions or underreported income," he said. "The IRS is not an agency that is easy to avoid. Generally, if they want information, you're going to have to give it to them."

Adams is a Grammy winner and host of the Yolanda Adams Morning Show with Brother Larry Jones, which debuted last year. The program is heard in major markets nationwide, including Atlanta, New York, Washington and Philadelphia.


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