Fat Joe used to make it rain in the club, but now the Terror Squad leader has to scrape up over $700,000 and make it rain on Uncle Sam.

The Bronx, New York, rap veteran (whose real name is Joseph Cartagena) pleaded guilty on Thursday on charges that he failed to pay taxes on approximately $3 million he earned in 2007 and 2008, The Miami Herald reported. Now Joe is facing up to two years in prison and a number of fines and penalties.

The "What's Luv" MC entered the plea in a Newark, New Jersey, federal court because he owns companies in the state. When U.S. Magistrate Cathy Waldor asked if the rapper understood the charges he was facing, he answered, "I super understand it."

The judge set bail at $250,000 and Fat Joe was released. While it seems that Joey Crack is taking the necessary steps to resolve the situation, it's unclear how his apparent cooperation will factor into his sentencing when he faces the judge again on April 3. Joe's lawyer, Jeffrey Lichtman, said the platinum-selling star "had already taken steps to resolve this situation" before he was charged with the crime.

It's been over two years since Joe released his last solo LP, The Darkside Vol. 1, but he has been gearing up to drop his 11th album. He rolled out a number of singles, including the Chris Brown-assisted "Another Round" as well as his Kanye West collaboration, [article id="1691192"]"Pride N Joy."[/article] No word on how his current legal drama will affect the progress of his next album.

Are you surprised that Fat Joe fell into tax trouble? Let us know in the comments.