Many Atlanta residents will recall last summer's episode that saw famed singer Lauryn Hill being accused of tax evasion for a three year period from 2005 to 2007. She pleaded guilty to this accusation, and agreed to pay $554,000 to the Internal Revenue Service in back taxes. Officials say that, to date, Hill has paid roughly $50,000 of that restitution.

A court hearing for Hill's back taxes case was recently postponed for two weeks, giving her that amount of time to pay off her tax debt.

There are a few things to take away from this case, and the first is that tax debt can be a crippling thing for many Americans. In some severe cases, it can lead to a tax lien being placed on an individual, which can make it basically impossible for someone to secure other lines of credit, in addition to other penalties.

Another aspect to Hill's story that many in-debt Georgia residents will want to know is that Hill is contesting the amount that is owed. This happens often -- the federal government will claim that you owe more than you actually do (or they will try to make you pay old tax debt that has been paid or cleared). With the right defense and an experienced attorney by your side, a successful appeal of the debt can be made.

Last but not least, Hill is going to have to take out a loan against some of her property to pay off the tax debt. Again, this is not easy for many people to do -- and it is why you need to vigorously defend any tax debt case made against you.

Source: Rolling Stone, "Lauryn Hill Given Two More Weeks to Pay Back Taxes," Jon Blistein, April 23, 2013