James C. Howell Jr., 54, of Germantown, Tenn., a suburb of Memphis, pleaded guilty to one count of income tax evasion, admitting that he attempted to evade payment of nearly $300,000 in taxes.
According to court records, Howell, a former certified public accountant, filed a 2004 federal income tax return with the Internal Revenue Service 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 Individual Retirement Account 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 the years 2005 to 2008.
Howell’s plea agreement states that the tax loss to the United States for tax years 2004 through 2008 is $286,301.
He faces up to five years in prison and a fine of $250,000.
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