Howard Keith Wilson, a Danville, Illinois resident and owner of Wilson’s Body Shop, 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.
Wilson, age 73, pleaded guilty on July 24 before U.S. Magistrate Judge Eric I. Long to fifteen counts of collecting employment taxes from his employees but not remitting them or the employer’s share to the Internal Revenue Service (IRS). He also admitted guilt on three counts related to not filing personal federal income tax returns from 2018 through 2020.
Evidence presented at sentencing showed that Wilson deducted federal employment taxes from his employees’ wages but failed to pay those amounts or the employer’s portion—resulting in an employment tax loss of $351,152 between 2013 and 2020. Additionally, he did not file personal income tax returns or pay taxes during three years when his reported incomes were $698,354 in 2018, $1,058,401 in 2019, and $772,603 in 2020. This resulted in a further federal income tax loss of $505,871. Despite these failures, Wilson continues operating his business and maintains substantial net worth.
U.S. District Judge Colin S. Bruce ordered Wilson to serve one day in jail (time served), followed by supervised release with conditions including paying restitution totaling $614,411.26 to the IRS and serving intermittent confinement for thirty weekends at a local facility contracted by the United States Marshals Service. Judge Bruce also mandated that Wilson pay half of his disposable monthly income toward restitution obligations along with a mandatory special assessment of $1,575.
Each count of failing to pay employment taxes carries statutory penalties up to five years’ imprisonment per count as well as additional fines and full restitution requirements.
The case was investigated by the Internal Revenue Service – Criminal Investigations Division and prosecuted by Supervisory Assistant U.S. Attorney Eugene L. Miller.
