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Author: Scarinci Hollenbeck, LLC
Date: May 6, 2013
The Firm
201-896-4100 info@sh-law.comA U.S. Magistrate Judge has postponed sentencing for Grammy winner Lauryn Hill after she pleaded guilty to tax law violations, but she still must pay back taxes by May 3.
In 2012, Hill admitted to failing to file tax returns from 2005 to 2007 on $1.8 million in income earned during that period. Although the court granted the New Jersey resident a two-week reprieve to come up with the rest of the money she owes, she was required to pay more than $504,000 to the federal government by the May 3 deadline. She has already made one $50,000 toward her taxes and penalties, according to Reuters.
Hill, who has not released an album in 12 years, hoped to generate some income to put toward her back taxes by signing a new recording contract, but these plans were stalled, the news source added. Instead, Hill’s representative said she planned to take out a loan to make her payment and was simply waiting on final approval. U.S. Magistrate Judge Madeline Cox Arleo scheduled the final hearing for May 6, and cautioned Hill to avoid making any requests or missteps.
“This is not someone who stands before the court penniless,” Arleo said, according to Reuters.
Hill currently faces up to three years in prison, one year for each count of tax evasion. A MarketWatch analysis notes that courts were sending more tax cheats to jail in an effort to curb the high incidence of tax evasion and prompt evaders to pay their back taxes. Citing data from the Internal Revenue Service, the news source reports that in 2012, 673 tax evaders received jail sentences, a 52 percent increase from 2002 when 442 served prison time for their tax crimes. This trend may also come to affect wealthy tax evaders more heavily as the IRS seeks to close the tax gap. Audits of those making $1 million or more increased 12 percent in 2012 from those conducted in 2011, MarketWatch reports.
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A U.S. Magistrate Judge has postponed sentencing for Grammy winner Lauryn Hill after she pleaded guilty to tax law violations, but she still must pay back taxes by May 3.
In 2012, Hill admitted to failing to file tax returns from 2005 to 2007 on $1.8 million in income earned during that period. Although the court granted the New Jersey resident a two-week reprieve to come up with the rest of the money she owes, she was required to pay more than $504,000 to the federal government by the May 3 deadline. She has already made one $50,000 toward her taxes and penalties, according to Reuters.
Hill, who has not released an album in 12 years, hoped to generate some income to put toward her back taxes by signing a new recording contract, but these plans were stalled, the news source added. Instead, Hill’s representative said she planned to take out a loan to make her payment and was simply waiting on final approval. U.S. Magistrate Judge Madeline Cox Arleo scheduled the final hearing for May 6, and cautioned Hill to avoid making any requests or missteps.
“This is not someone who stands before the court penniless,” Arleo said, according to Reuters.
Hill currently faces up to three years in prison, one year for each count of tax evasion. A MarketWatch analysis notes that courts were sending more tax cheats to jail in an effort to curb the high incidence of tax evasion and prompt evaders to pay their back taxes. Citing data from the Internal Revenue Service, the news source reports that in 2012, 673 tax evaders received jail sentences, a 52 percent increase from 2002 when 442 served prison time for their tax crimes. This trend may also come to affect wealthy tax evaders more heavily as the IRS seeks to close the tax gap. Audits of those making $1 million or more increased 12 percent in 2012 from those conducted in 2011, MarketWatch reports.
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