Huntsville Man Must Pay $3.7 Million To IRS For Tax Evasion
HUNTSVILLE -- A federal judge this week sentenced a Huntsville man to five years' probation for tax evasion but ordered him to pay $3.7 million in restitution to the government, announced U.S. Attorney Joyce White Vance and Internal Revenue Service Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot.
U.S. District Judge Abdul K. Kallon sentenced PAUL BRACY JR., 71, on one count of tax evasion. The U.S. Attorney's Office charged Bracy in July. Bracy owned several small businesses: Bracy's Vending and the Green Room Lounge in Madison County and PBS Blues Bar in Macon County. Bracy also owned four pieces of real property, two in Madison County, one in Choctaw County and one in Mobile County.
According to court documents, the IRS was about to determine Bracy was personally responsible for $60,995 in unpaid taxes associated with businesses he owned, when Bracy conveyed the four pieces of real property, via “sham transactions,” to others in order to avoid IRS seizure of the properties to satisfy the outstanding tax amount. As part of his plea agreement, Bracy agreed to pay the $3,747,650 in restitution to the government.
“Most citizens diligently pay their taxes,” Vance said. “The willful failure of others to do so is patently unfair and criminal. We will aggressively seek to investigate and prosecute those individuals.”
"Business owners have a responsibility to withhold income taxes for their employees and then remit those taxes to the Internal Revenue Service," Hyman-Pillot said. "The failure to pay over withheld taxes is a serious offense. IRS Criminal Investigation vigorously pursues anyone who collects taxes and fails to timely remit those taxes."
The IRS-CI investigated the case, which the U.S. Attorney's Office for the Northern District of Alabama prosecuted.