DaBaby Gets Into Fight With IRS Over $1.76M Tax Bill

The IRS wiped out over $1.6 million in deductions from DaBaby’s 2022 tax return and he’s now fighting back in federal court.

DaBaby filed a U.S. Tax Court petition on July 22, 2026, contesting nearly $1.76 million in taxes and penalties.

The IRS claims the Charlotte rapper owes that money from his 2022 tax year, and his legal team is fighting every disallowance.

The IRS disallowed $274,218 in Schedule C business expenses, $319,479 in legal and professional fees, and $1,047,823 in travel costs. On top of those disallowances, the agency also added $230,859 in alleged unreported income and tacked on a $293,933.80 accuracy-related penalty.

Kirk’s legal team says the auditors misread the books on every count. The travel write-offs weren’t personal: DaBaby was on a world tour in 2022, and every road cost was a direct business expense.

That $230,859 the IRS flagged as unreported income was just money moving between his own business entities, not new cash coming in from anywhere.

The petition also lays out just how organized Kirk’s financial setup actually was. He maintained separate bank accounts for each entity, employed a professional business manager, and had a CPA firm prepare all of his returns.

Income was properly reported across a Schedule C, a partnership return, and an S-Corp filing, and his team handed over documentation when asked.

The case is filed as a regular Tax Court petition rather than a small case proceeding, meaning Kirk’s team has no interest in a quick settlement.

Attorney Michael A. Raiken of Cherry Hill, New Jersey is handling the case. His petition asks the court to toss the deficiency and the penalty in full.

DaBaby has navigated legal disputes across his career, but this Tax Court showdown carries the biggest dollar amount he’s contested.

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