CG man pleads guilty to tax charges
Published 10:51 am Wednesday, October 21, 2009
A Coal Grove man who pleaded guilty earlier this year to tax evasion was sentenced last week in U.S. District Court.
Senior U.S. District Judge James L. Graham sentenced businessman Derrik Willis, 32, to three years probation. β
The three years probation include five months of home confinement that will be served on 50 consecutive weekends with work privileges through the week. βIn addition, Willis must complete 25 hours of community service. β
Willis was also ordered to pay restitution to the Internal Revenue Service (IRS) in the amount of $135,618 at a rate of $2,000 per month.
In June, Willis pleaded guilty to one count of willfully failing to file a 2004 federal income tax return with the Internal Revenue Service (IRS).
According to court documents, the IRS initiated a criminal investigation on Willis and his gas station reimaging business upon receipt of information that Willis had allegedly under-reported his income.
For the 2004 income tax year, Willis failed to file a federal individual income tax return even though he had received gross deposits of over $1.2 million.
As part of the expedited plea agreement program, Willis provided both a federal individual income tax return and a federal partnership tax return for 2004.
The partnership tax return showed gross receipts in the amount of $464,273, of which $125,986 in ordinary income was attributable to Willis.
The federal individual income tax return showed that Willis received an additional $795,440 in gross receipts, with an income tax due an owing figure of $135,618.