Lauryn Hill, tax evasion sentencing postponed

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NEWARK — Two more weeks and a lecture.

That’s what a federal judge in Newark gave singer Lauryn Hill today.

Hill, the South Orange resident who blazed a trail for female hip-hop singers 15 years ago, was in federal court today, facing the music for her admitted turn as a tax scofflaw.

The 37-year-old mother of six was due to be sentenced on three misdemeanor counts of failing to file three years of tax returns, accounting for $1.8 million in income. She pleaded guilty last summer to the charges, and could face up to 30 months in prison under federal sentencing guidelines, her attorney said.

But U.S. Magistrate Court Judge Madeline Cox Arleo decided to postpone sentencing until May 6, in part to give Hill more time to satisfy her criminal tax liability. It now stands at about $504,000.

Celebrities and their tax problems 17 Gallery: Celebrities and their tax problems

Arleo did so even after it became clear that Hill had paid just a fraction of the nearly $1 million total she owes the federal and state government, despite declarations to do otherwise. The only payment Hill had made was $50,000 late last year, according to her attorney, Nathan Hochman of Bingham McCutchen.

Arleo was incredulous, noting Hill’s “substantial assets.” These include a stream of royalties from Hill’s back catalog, which includes her 1998 solo album, “The Miseducation of Lauryn Hill,” which went on to win five Grammy Awards.

“This is not someone who stands before the court penniless,” she said.

Hill, who was sitting at the time, was dressed in a dark-striped trench coat over a billowy white blouse and dark pants. At her side, a designer clutch handbag sat. She did not speak during the hearing, nor with reporters afterward.

Arleo gave Hill until the Friday before May 6 to pay off her criminal tax liability. The judge also declared she will not postpone the hearing again, absent extraordinary circumstances.

“Actions speak louder than words,” she said before she postponed the sentencing.

Hochman said that Hill plans to pay off the tax debt through a $650,000 loan she is securing against two properties she owns.

The judge’s deadline does not apply to the civil tax liability that Hill faces, which includes interest, penalties and unpaid state taxes. Altogether, the singer owes a total of $968,000 to tax collectors, Hochman said. Based on that amount, federal sentencing guidelines call for prison sentences of 24 to 30 months, he said, adding that he is hopeful that Hill will be given probation instead.

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Today’s proceeding also revealed that Hill, whose last album was released in 2002, has plans to release new music.

Last summer, Hill signed a new recording contract, Assistant U.S. Attorney Sandra Moser said. Under the terms of the deal, Hill was to receive $1 million for recording five songs, plus additional money if she completed a new album of music, she told Arleo.

But Hill has yet to complete the initial five songs, and a tour she embarked upon late last year did not generate as much revenue as anticipated, Moser said.

After the hearing, a Hill representative said the singer has signed a deal with Sony Music, but he declined to discuss the terms.

He also disputed reports that said she is behind on her rent for a South Orange house, though he acknowledged the singer is facing a lawsuit by the town that alleges she uses the mansion on Irving Avenue for rehearsals and to house visiting musicians, a violation of zoning ordinances.

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