Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Lauryn Hill's Deadline to Pay Back Taxes Passes
Author: Scarinci Hollenbeck, LLC
Date: May 6, 2013
Key Contacts
Back
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.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know
For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
Author: George McGowan
Estate Planning for Digital Assets Under New Jersey Law
As our personal and financial lives increasingly move online, estate planning must evolve to address a new category of property: digital assets. From email accounts and social media profiles to cryptocurrency and cloud-stored business records, these assets often carry both financial and sentimental value. Yet, without proper planning, they can become inaccessible—or even lost—upon incapacity […]
Author: Marc J. Comer
The Role of Representation and Warranty Insurance in M&A Transactions
In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]
Author: George McGowan
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?
Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
Author: George McGowan
Why Every Business Should Conduct an Annual Insurance Coverage Review
Most New Jersey business owners purchase insurance policies, file them away, and assume they are protected if a claim arises. Without a regular insurance coverage review, many companies discover gaps only after a lawsuit, cyberattack, property loss, or other significant event occurs. An annual insurance coverage review can help businesses identify potential risks, ensure their […]
Author: George McGowan
Demand Letters & Cease and Desist Letters: When to Send One (and When Not To)
Businesses and individuals often encounter situations where another party breaches a contract, fails to pay a debt, or continues harmful conduct. In many such disputes, a precisely drafted demand letter or cease-and-desist letter serves as a powerful legal tool. It can frequently resolve the dispute and avoid litigation. While demand or cease-and-desist letters can resolve […]
Author: George McGowan
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.