The 37-year-old singer appeared in federal court in Newark, New Jersey on 29.06.12 to admit she failed to file returns between 2005 and 2007, despite an income of more than $1.8 million from recording royalties.
She could face up to three years in jail - one for each count of evasion - and was released on $150,000.
She will face sentencing in November.
This is the second legal wrangle Lauryn - best known for her work with the Fugees and solo album `The Miseducation of LaurynHill` - has faced in recent years.
Lauryn found herself in a legal wrangle after her former fashion consultant accused her of stealing clothes.
Company Via Davia Vintage claimed in 2011 the former Fugees star took the majority of a "wardrobe of high fashion items" from them after they agreed to provide them for her 2007 tour of Europe.
She was also sued in relation to the tour for harassment and unpaid wages by Jay Gore, a guitarist in her band, who claimed she would insult the band while he toured with her.
Part of the lawsuit stated: "After shows, Hill would demand that the musicians and road support personnel attend meetings where she would engage in a person-by-person critique and berating."