COLUMBUS - Danny R. Watson, a former Worthington, Ohio, small businessman was sentenced in United States District Court here today to serve 10 months in prison and to pay a $10,000 fine for having subscribed to false tax returns, in order to avoid payment of $21,771.97 in federal income taxes for 1995 and 1996.

Gregory G. Lockhart, United States Attorney for the Southern District of Ohio, and Cromwell A. Handy, Special Agent in Charge, Internal Revenue Service Criminal Investigation, announced the sentence handed down today by United States District Judge Edmund A. Sargus, Jr.

The Court record shows that Watson, age 39, had paid many of his personal expenditures from a business checking account, which expenditures included apartment rentals, utilities, insurance, cable TV, state and federal taxes, child support, school tuition and storage for personal property. These amounts were actually personal income to Watson, but he failed to disclose these amounts, and other similar income he received through his business, to his tax return preparer to whom he supplied only summaries of income and expenses for purposes of preparing his annual tax returns.

At sentencing Judge Sargus informed Watson that one important reason for the prison sentence was Watson's continued refusal to cooperate with the authorities by providing complete financial records. Further, the Judge ordered Watson to pay the outstanding $21,771.97 in taxes. An agreement Watson previously had signed with the United States Attorney requires him to file complete and accurate tax returns, and to pay all taxes, for every year after 1996.