Germantown Resident Sentenced On Tax Evasion Charges
Memphis, TN – James C. Howell, Jr., 54, of Germantown, Tennessee, was sentenced by U.S. District Judge Samuel H. Mays, Jr. to serve a year in prison, to be followed by a year of community confinement, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee. Judge Mays also ordered Howell to pay restitution of $286,301 to the Internal Revenue Service (IRS).
Howell pled guilty on June 8, 2012, to one count of income tax evasion stemming from an indictment filed on September 21, 2011, that charged him with one count of income tax evasion and four counts of failing to file income tax returns for 2005 through 2008.
According to the factual basis read in open court during the plea hearing, Howell, a former CPA, filed a 2004 federal income tax return with the Internal Revenue Service (IRS) that falsely claimed he had no taxable income for that year. Howell admitted that he understated gross receipts from his business, overstated business expenses, misidentified early withdrawals from his IRA as long term capital gains, understated the sales price of two mutual funds, and omitted charitable contributions and mortgage interest payments that would have exceeded the total amount of income reported. During the hearing, Howell also admitted that he failed to file tax returns for 2005 through 2008.
Howell’s plea agreement states that the tax loss to the United States for tax years 2004 through 2008 is $286,301.
This investigation was conducted by IRS Criminal Investigation. Assistant United States Attorney Jonathan Skrmetti represented the government.