Howard Keith Wilson, a Danville, Illinois business owner, was sentenced on March 30 to three years of supervised release and thirty consecutive weekends in jail for failing to pay employment taxes and file federal income tax returns.
The case highlights the consequences of not meeting federal tax obligations as an employer. Wilson’s actions resulted in significant financial losses to the government over several years.
Wilson, age 73, pleaded guilty on July 24 before U.S. Magistrate Judge Eric I. Long to fifteen counts related to collecting but not remitting employment taxes from his employees between 2013 and 2020. He also admitted failing to file personal federal income tax returns from 2018 through 2020. Evidence presented at sentencing showed that Wilson owned and operated Wilson’s Body Shop in Danville, where he withheld employment taxes from workers’ paychecks but did not forward those funds or the employer’s share to the Internal Revenue Service (IRS). The total unpaid employment taxes amounted to $351,152. In addition, he failed to file personal returns or pay federal income taxes on substantial earnings during three consecutive years, resulting in a further loss of $505,871.
U.S. District Judge Colin S. Bruce ordered that Wilson serve one day in jail (time served), followed by supervised release with conditions including payment of $614,411.26 restitution to the IRS and intermittent confinement on weekends at a local jail under contract with the United States Marshals Service. Wilson must also pay half his disposable monthly income toward restitution and has been assessed a mandatory special fee of $1,575.
The statutory penalties for each count could have included up to five years’ imprisonment per offense as well as fines up to $10,000 per count.
The investigation was conducted by the Internal Revenue Service – Criminal Investigations Division and prosecuted by Supervisory Assistant U.S. Attorney Eugene L. Miller.
