In his famous years, Willie Nelson had a slew of unique experiences, including releasing the first and only major-label album within an agreement with the IRS. The IRS Tapes: Who’ll Buy My Memories? came from a run-in Nelson had with the IRS in 1990, where they seized all of his assets.
Videos by American Songwriter
In 1990, Willie Nelson struggled to pay $16.7 million in back taxes. In the 1980s, Nelson made some investments that were later declared illegal by the federal government, and he owed significant debt on top of interest and penalties. According to a report from History, Nelson’s lawyers agreed to a cash payment of $6 million to settle the debt. However, despite being one of the most successful outlaw country stars, Nelson simply didn’t have the money.
On November 9, the IRS seized all of his assets, froze his bank accounts, and forbade access to his properties. This included his ranch in Dripping Springs, Texas; Pedernales Country Club and Recording Studio; at least 20 other properties, as well as memorabilia, recordings, and instruments. The one thing they didn’t get was Trigger, Nelson’s guitar. His daughter Lana had it shipped to him in Hawaii before the feds raided his properties.
“As long as I got my guitar,” Nelson said at the time, “I’ll be fine.”
Willie Nelson vs. The IRS and the Album that Helped Save His Career
According to Lana, Willie Nelson didn’t have $6 million to pay off the negotiated debt. He didn’t have $1 million, or even $30,000, as she told Texas Monthly at the time. However, Nelson and his lawyers further negotiated with the IRS, which led to the compilation album Who’ll Buy My Memories?
Additionally, as it turns out, a lot of Willie Nelson fans will buy his memories. The IRS planned to auction off Nelson’s belongings to assist in paying his debts, but allowed much of the property to be purchased by the Willie Nelson and Friends Showcase for around $7,000.
When Nelson’s 44-acre San Marcos, Texas ranch went up for auction, a farmer’s lobbying group purchased it with the express purpose of selling it back to Nelson. He had helped this group through Farm Aid, and they planned to return the favor.
Additionally, his Pedernales Country Club/studio was purchased by former University of Texas football coach Darrell Royal. He planned to keep the property to eventually return it to Nelson as well. The IRS caught wind of this and refunded his money, but when the property went up for auction again, Nelson’s nephew Freddy Fletcher bought it. Willie Nelson’s fans, friends, and family were rallying together to help the country legend keep his belongings.
Eventually, a plan was enacted between the IRS and Willie Nelson. He would release a compilation album, and a portion of the revenue would go toward paying off his debts, among other necessary payments. The album retailed at $19.95, and could be ordered by dialing (800) IRS-TAPE. The revenue was split among the company promoting the album, the IRS, Willie Nelson, Sony Records, other album-related expenses, and the tax generated by the sale.
The IRS Tapes Brought in Significant Funds, but Not Enough to Pay the Debt On Its Own
The album only generated $3.6 million for Nelson’s debt, but he also sued Price Waterhouse—the company that made the shady investments with Nelson in the first place—and when he settled the lawsuit, he was able to pay off the rest of his debt in the following years. By 1993, he was debt-free.
“Mentally, it was a breeze,” Nelson told Rolling Stone in 1995. “They didn’t bother me, they didn’t come out and confiscate anything other than that first day, and they didn’t show up at every gig and demand money. I appreciated that. And we teamed up and put out a record.”
Featured Image by Paul Natkin/WireImage
Leave a Reply
Only members can comment. Become a member. Already a member? Log in.