‘Suge’ Knight Gets IRS Notice to Pay $6 Million

Rap mogul Marion “Suge” Knight received notice this week from the Internal Revenue Service, claiming he owes about $6 million in personal income taxes, his attorney said Friday.

The IRS notice adds to the financial turmoil surrounding the owner of music label Tha Row Records, formerly known as Death Row Records. It comes just months after Knight’s former lawyer, David Kenner, was sentenced to three years’ probation in April after he admitted to hiding more than $4 million in earnings from the IRS.

In January, Death Row pleaded guilty to misdemeanor tax charges that the company failed to submit an income tax return, which appeared to end a racketeering investigation launched in 1995 by local and federal authorities. The probe included allegations that Knight and his label committed drug trafficking, money laundering and violent acts.

Knight’s new lawyer, Arthur Barens, said this week’s collection claim is for taxes allegedly owed in 1997 and appears to concern a period during which the 37-year-old rap impresario was in prison.

Knight served a five-year sentence beginning in 1996 for violating probation on a previous conviction involving a fight at a Las Vegas hotel--a scuffle that took place hours before rap star Tupac Shakur was shot to death.

“We don’t have the collateral information to evaluate this yet,” Barens said. “It came as a surprise. Suge Knight absolutely pays his taxes.”

Barens said he questions why it has taken so long to notify Knight of the claim. “This is the first notice we’ve had,” he said.

IRS spokesman Victor Omelczenko said he could not comment on any collection notice until a lien is placed on a taxpayer’s property for failing to settle a claim. Barens said there have been no liens filed in connection with the $6-million notice.

According to the Los Angeles County recorder’s office, the only current tax liens on Knight’s property are on two jet skis, with penalty and collections costs totaling $81.

“[Knight] is a hard-working citizen and meets all his responsibilities,” Barens said. “He intends to respond. He plans to pay it.”