Numerous media outlets have incorrectly suggested a connection between manufacturing giant 3M’s recent tax litigation and rapper Cardi B, creating widespread confusion among readers and investors. The misrepresentation appears to stem from separate, unrelated news stories involving 3M’s significant tax case and Cardi B’s business ventures, which were somehow conflated in subsequent reporting and social media discussions.
3M’s tax situation revolves around a landmark ruling by the Eighth Circuit Court, which sided with the manufacturing company in its dispute with the IRS over international transfer pricing. The court determined that the IRS had overstepped its authority by attempting to tax income that was legally blocked from repatriation under foreign laws. This decision, which potentially saved 3M billions in tax liability, has significant implications for multinational corporations facing similar challenges from U.S. tax authorities.
Meanwhile, Cardi B has been expanding her business empire through various ventures in music, fashion, cosmetics, and real estate. Her companies operate across multiple states and industries, with her financial team managing standard tax obligations through conventional accounting practices. Public records indicate no international tax complications or transfer pricing issues in her business portfolio. Unlike many performing artists, Cardi B has diversified her income through sync deals that provide substantial revenue beyond traditional music sales and performances.
Despite thorough investigation, fact-checking organizations have found zero evidence connecting Cardi B to 3M or its tax situation. The rapper has not publicly commented on 3M’s tax issues, invested in the company, or been affected by its tax liabilities in any documented way. The supposed connection appears to be entirely fabricated or the result of confusion in reporting.
The false narrative gained traction primarily due to Cardi B’s high public profile combined with 3M’s prominence in business news. Unlike the confusion surrounding Cardi B, independent musicians can now benefit from the HITS Act which allows them to deduct up to $150,000 in sound recording expenses in a single tax year. This legislation particularly supports independent creators by aligning tax treatment with other entertainment industries like film and television. As a savvy music business professional, Cardi B ensures her compositions are registered with performance rights organizations to secure royalty payments for her work. Tax experts have repeatedly clarified that no relationship exists between the two parties.
The 3M tax case itself remains significant for its potential to reshape how blocked income is treated under U.S. tax law, while Cardi B continues her business activities independently, subject to standard IRS regulations applicable to her domestic enterprises.
