Winchester Man Sentenced for Tax Evasion

Lynchburg, Virginia – James Bowers Johnson, a 47-year-old Winchester man, has been sentenced to 48 months in Federal prison for willfully failing to file personal tax returns and attempting to obstruct the administration of the Internal Revenue Code.

Jurors found Johnson guilty of one count of obstructing the Internal Revenue Service and three counts of willfully failing to file personal tax returns in January 2013.

Johnson, who was self-employed, hid his gross income, derived from the sale of prepaid telephone cards, rental receipts and capital gains, from the Internal Revenue Service in a number of ways. He requested that customers place payments in a variety of nominee entities he controlled, used money orders or cash and concealed his owners of assets by placing assets, including his residence, and bank accounts in the names of limited liability companies, foundations, companies, corporations and domestic and foreign trusts.

Between 1999 and 2007, Johnson attempted to conceal more than $1.4 million in income. The jury found that Johnson, despite earning $160,000 in income in 2005, $385,000 in income in 2006, and $123,000 in income in 2007, willfully failed to file a tax return in any of those years.

United States Attorney Timothy J. Heaphy stated, “All Americans must pay their fair share of federal taxes – something that Mr. Johnson intentionally chose not to do.” Heaphy added, “Instead of abiding by the law and paying his taxes, Mr. Johnson hid income from the IRS and clogged the tax adjudication system with frivolous lawsuits and court filings.

Johnson was also found in contempt by Honorable Judge Norman K. Moon, who added 30 days of additional incarceration to the end of Johnson’s sentence. Johnson will serve 48 months in Federal prison, followed by the additional 30 days. The investigation of the case was conducted by the Internal Revenue Service Criminal Investigation. Assistant United States Attorney C. Patrick Hogeboom III prosecuted the case for the United States.

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