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Kylie Jenner's Billionaire Status Stripped After She 'Forged' Tax Returns

Kylie Jenner | Instagram
By Alyssa McCraw

Kylie Jenner is no longer a billionaire.

Jenner, 22, was named "The Youngest Self-Made Billionaire Ever" by Forbes in 2019. The publication said she even beat Facebook founder Mark Zuckerberg by a few years (he was 23 when he claimed the crowns). Now, Forbes has exposed what they're calling "Kylie Jenner's Web of Lies."

The beauty mogul sold off the majority share of her makeup empire earlier this year in what was slated as "one of the greatest celebrity cash outs of all time."

"But the deal’s fine print reveals that she has been inflating the size and success of her business. For years," Forbes wrote today.

Related to what you're reading:

Kylie Cosmetics 'Significantly Smaller' & 'Less Profitable' Than It Looks

Kylie Jenner and her massive car collection
Kylie Jenner | Instagram

Peter Harf, chairman of Coty (the company who purchased Kylie's business) said Jenner was "a modern-day icon, with an incredible sense of the beauty consumer."

This is where the fine print comes in. As Forbes writes:

"Filings released by publicly traded Coty over the past six months lay bare one of the family’s best-kept secrets: Kylie’s business is significantly smaller, and less profitable, than the family has spent years leading the cosmetics industry and media outlets, including Forbes, to believe."

Before making some comparisons between the Kardashian-Jenner clan and President Trump, Forbes had a few more choice words to share.

Jenners Were 'Desparate' To Appear 'Even Richer'

A spread of Kylie lip kits
Kylie Jenner | Instagram

"Of course white lies, omissions and outright fabrications are to be expected from the family that perfected—then monetized—the concept of 'famous for being famous,'" they wrote.

The article then revealed, "the unusual lengths to which the Jenners have been willing to go—including inviting Forbes into their mansions and CPA’s offices, and even creating tax returns that were likely forged—reveals just how desperate some of the ultra-rich are to look even richer."

Stephanie Wissink, an equity analysis at Jefferies, made the statement that "everything the Kardashian-Jenner family does is stay on-brand, it needs to be bigger than it is.”

Kylie Jenner 'Is Not A Billionaire'

Kylie Jenner enters her custom beige Mercedes G550
Kylie Jenner | Instagram

"Based on this new information," the money mag wrote, "plus the impact of COVID-19 on beauty stocks and consumer spending—Forbes now thinks that Kylie Jenner, even after pocketing an estimated $340 million after tax from the sale, is not a billionaire."

They went on to slam the family's monetization methods, saying that "as with other Kardashian ventures, Kylie’s business began as a way to cash in on a minor scandal." Forbes then recounted the tale of Kylie's denying that she used any sort of lip filler/injections at a teenager was and later confessed to it 2015.

"Far from embarrassed about being caught in a lie, she—and her shrewd mother, Kris—seized it as a marketing opportunity."

Jenner Camp Had To Be 'Pressed For Proof'

Kris Jenner and Kylie Jenner aboard their private plane
Kylie Jenner | Instagram

After Jenner's big sister and cosmetics competitor Kim Kardashian-West landed her own Forbes cover, the outlet reports that "Jenner publicists began a campaign to 'get a Forbes cover for Kylie.'"

The financial claims were that Kylie Cosmetics raked in $400 million in the first year-and-a-half of business, and younger Jenner herself pocket a personal $250 million during that time.

"Pressed for proof, they opened up their books," Forbes said.

Their representatives had regular meetings at momager Kris Jenner's lavish Calabasas home where "tax returns detailing $307 million in 2016 revenues and personal income of more than $110 million for Kylie that year" were placed in front of them.

They said this amount "would have been enough to put her at number two on the Celebrity 100 list, behind Taylor Swift."

Jenner 'Led Forbes To Believe' A Lie

A Kylie Cosmetics vending machine
Kylie Jenner | Instagram

Before the deal with struggling makeup giant Coty, revenues for Jenner's business were "$177 million according to the Coty presentation—far lower than the published estimates at the time."

"More problematic," Forbes continued, "Coty said that sales were up 40% from 2018, meaning the business only generated about $125 million that year, nowhere near the $360 million the Jenners had led Forbes to believe."

In trying to make sense of it, some experts shared their thought that maybe the business had a quiet fall. Another analyst doesn't think it's that simple, as "there doesn’t seem to be any evidence the business has cratered."

'Kylie's Camp Has Been Lying'

Kylie Jenner takes a yacht trip in a green bikini
Kylie Jenner | Instagram

Forbes said there's a situation they believe is "more likely," which is that "the business was never that big to begin with, and the Jenners have lied about it every year since 2016—including having their accountant draft tax returns with false numbers—to help juice Forbes’ estimates of Kylie’s earnings and net worth."

"While we can’t prove that those documents were fake (though it’s likely), it’s clear that Kylie’s camp has been lying."

Factoring in the impact of the current pandemic, and "all this new information...Forbes has recalculated Kylie’s net worth and concluded that she is not a billionaire. A more realistic accounting of her personal fortune puts it at just under $900 million," the concluded.

Forbes also said the "asked the Jenners for input on [ther] numbers."

"But pressed for answers on the many discrepancies, the typically chatty family did something out of character: They stopped answering our questions."

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