The Tax 'Miseducation' of Lauryn Hill

By Ken Berry

Singer and actress Lauryn Hill, who captured five Grammy awards for her critically acclaimed 1998 album The Miseducation of Lauryn Hill, has been charged with failing to pay taxes on income totaling $1.8 million. According to the US Attorney's office, Hill didn't file tax returns with the IRS for the three-year period covering 2005, 2006, and 2007.
 
The New Jersey native has been known for her reclusive, and sometimes erratic and confrontational, behavior ever since she first rose to fame as a member of the Fugees hip-hop group. She eventually settled a contentious lawsuit in 2001 after four musicians accused her of cheating them out of production credits on her breakout Grammy award-winning album. After reuniting with the Fugees in 2005, the tour was cut short when Hill abruptly departed without offering any explanation.
 
But Hill recently resurfaced in the limelight. In April, she played before a sellout crowd in London. Just last week, her performance at a New York City ballroom and a surprise appearance the Hot 97 Summer Jam concert at MetLife Stadium in New Jersey, garnered rave reviews.
 

Hill's Side of the Story

The New York Daily News reported that Hill claims she went "underground" for her family's "safety and survival," but she intended to pay the IRS.

Hill's primary source of income for the three tax years in question stems from royalties from four recording and film corporations she owns: Creations Music Inc., Boogie Tours Inc., L.H. Productions 2001 Inc., and Studio 22 Inc.
 
There's been no outward indication that Hill is in financial trouble. She lives quietly in South Orange, New Jersey, and has six children, including five with Rohan Marley, son of reggae legend Bob Marley. No liens have been filed against her.
 
Hill is now scheduled to appear before a US magistrate judge in federal court in Newark, New Jersey, on June 29. If found guilty, she faces up to a year in prison and a $100,000 fine.
 
Related articles:
 

You may like these other stories...

The law makes it difficult for itemizers to deduct medical expenses. To reap any write-off, you must pay bills that aren't covered by insurance, reimbursed by employers or otherwise satisfied by, for example, a company-...
Drug patents held overseas can pare makers’ tax billsAs the Obama administration tries to stop companies from avoiding taxes by moving their headquarters overseas, the makers of some of the world’s most lucrative...
Starting in October, the IRS will send warning letters to tax return preparers who appear not to be complying with Earned Income Tax Credit (EITC) due diligence requirements.Section 6695(g) of the Internal Revenue Code...

Already a member? log in here.

Upcoming CPE Webinars

Oct 9In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards.
Oct 15This webinar presents the requirements of AU-C 600, Audits of Group Financial Statements (Including the Work of Component Auditors).
Oct 21Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience’s communication style.
Oct 23Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.