Wyclef Jean was hit with a massive $2.1 million (£1.4 million) tax bill just weeks before he announced his decision to enter Haiti's presidential race.
The Fugees star filed papers on Thursday (05Aug10) to make his candidacy official and he will run in the country's upcoming election.
Online reports have now emerged suggesting Jean has some major financial problems to resolve before he can concentrate on his political career.
Bosses at America's Internal Revenue Service (IRS) filed a multi-million dollar tax lien against the rapper in May (10) after he allegedly fell behind with payments, according to documents obtained by TheSmokingGun.com.
But Jean insists his financial woes are being sorted out, telling U.S. TV show Larry King Live, "I have great lawyers, and I have great business people that work with me... There is no situation of Wyclef Jean that we will ignore. We respect the IRS very much... Any personal Wyclef matters are being handled as we speak. Everything is paid up."
Jean was previously mired in a financial scandal when he was accused of misusing donations to his Yele Haiti charity and personally profiting from the cash. He denied the claims and subsequently hired a new firm of accountants to keep the organisation's books in order.
He stepped down from running the organisation shortly before he announced his Haitian presidential candidacy.