Mystikal Reaches Settlement In $3M Tax Case: Report

BYAron A.15.0K Views
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Mystikal attends the 2013 BMI R&B/Hip-Hop Awards at Hammerstein Ballroom on August 22, 2013 in New York City.
Mystikal's $3M legal battle against the United States for taxes won't go to court.

Mystikal might be fresh out of prison but he still has a few legal battles he has to tend to. The rapper was sued by the United States Government over $3M in back taxes that he owed. Thankfully, he's managed to dodge a trial in the legal battle as he's reached an agreement with the United States government.

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According to The Blast, Mystikal and the U.S. government told the court that they've reached a deal in their legal battle in order to avoid going through with a trial. 

Legal documents read, “The parties have reached an agreement to settle the plaintiff’s cause of action against the defendant in its entirety, although the necessary documentation has not yet been accomplished. In addition to this Notice, the parties have informed both the Clerk’s Office and Chambers of this settlement.”

Mystikal was accused of failing to pay $2.9M in back taxes, penalties, and interests from the years 1997-2002, 2007, 2008, and 2011-2013.

Late last month, the rapper attempted to claim that his record label and management are to blame for his financial problems. He explained that he only found out that he had to pay back a large sum of money in 2003, saying the labels and management handled his finances prior to that.

"For the tax years 1997 through 2002, Defendant was a recording artist signed to record labels and derived earnings from performances, recording advances, and songwriting royalties," Mystikal said in the documents. "For the years 1997 through 2002, Defendant reasonably believed that his income tax filings and payments were being handled by his record labels and other representatives.”


About The Author
Aron A. is a features editor for HotNewHipHop. Beginning his tenure at HotNewHipHop in July 2017, he has comprehensively documented the biggest stories in the culture over the past few years. Throughout his time, Aron’s helped introduce a number of buzzing up-and-coming artists to our audience, identifying regional trends and highlighting hip-hop from across the globe. As a Canadian-based music journalist, he has also made a concerted effort to put spotlights on artists hailing from North of the border as part of Rise & Grind, the weekly interview series that he created and launched in 2021. Aron also broke a number of stories through his extensive interviews with beloved figures in the culture. These include industry vets (Quality Control co-founder Kevin "Coach K" Lee, Wayno Clark), definitive producers (DJ Paul, Hit-Boy, Zaytoven), cultural disruptors (Soulja Boy), lyrical heavyweights (Pusha T, Styles P, Danny Brown), cultural pioneers (Dapper Dan, Big Daddy Kane), and the next generation of stars (Lil Durk, Latto, Fivio Foreign, Denzel Curry). Aron also penned cover stories with the likes of Rick Ross, Central Cee, Moneybagg Yo, Vince Staples, and Bobby Shmurda.
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