TAXES: The Ballad of Willie's Woes

If Willie Nelson is on the road again, it may be because he has no place else to go. Last week the Internal Revenue Service auctioned off two of the country singer's homes, taken as partial payment of back taxes and penalties. The agency sold Nelson's Evergreen, Colo., retreat for $650,000, and his ranch in Dripping Springs, Texas, went to Nelson supporter John Arens for $203,000. The IRS claims that Nelson owes the government a total of $16.7 million for failing to file tax returns from 1975 to 1977 and for taking invalid deductions. The singer is suing the firm Price Waterhouse for $6.5 million, accusing the accountants of providing him with bad investment advice on tax breaks. (The firm denies the charge.) But Nelson's style has not been cramped by financial problems. Last week he said he will embark on a new satellite-TV venture called the Outlaw Music Channel. He also plans to put out a new album. His suggested title: The IRS Tapes.