The Atlantic Wire reports Hill is facing up to three years in prison and $75,000 in fines after failing to file U.S. tax returns in 2005, 2006 and 2007.
The former Fugees singer blamed "threats to her family" for her failure to pay taxes on her $1.8 million income, though her lawyer claims she has since payed her debt.
Hill, who hasn't released a record since 1998, released "Neurotic Society (Compulsory Mix)" on iTunes over the weekend to allegedly help raise money to pay taxes.
"Here is a link to a piece that I was 'required' to release immediately, by virtue of the impending legal deadline," Hill wrote on Tumblr. "I love being able to reach people directly, but in an ideal scenario, I would not have to rush the release of new music . . . but the message is still there."