PHILADELPHIA, PA — William Powell, a 65-year-old contractor from Philadelphia, was sentenced this week to 12 months in federal prison followed by three years of supervised release. This verdict, delivered by United States District Court Judge Michael M. Baylson, also mandates Powell to pay $148,984 in restitution and a $50,000 fine for his deliberate evasion of income taxes.
The judicial proceedings stem from activities uncovered during an investigation by the Internal Revenue Service – Criminal Investigation and the United States Department of Agriculture Office of Inspector General. Powell, who provided general contracting and cleaning services for a nonprofit organization, engaged in fraudulent activities following his marriage to the nonprofit’s executive director in 2010. To sidestep conflict-of-interest regulations that barred his company from working with the nonprofit due to this relationship, Powell appointed a figurehead to ostensibly own the cleaning business, thereby maintaining operational control and financial gain under a guise.
From 2014 to 2018, Powell clandestinely managed the cleaning service, accruing over $700,000 in revenue funneled through his wife’s nonprofit. His deceitful methods included accepting cash payments, utilizing a business debit card for personal expenses, and failing to report his income on tax returns. Furthermore, he misled IRS agents during interviews concerning his financial activities, effectively evading $148,984 in taxes.
U.S. Attorney Jacqueline C. Romero emphasized the gravity of Powell’s actions, stating, “Paying the taxes that we lawfully owe is both our civic and legal duty. William Powell opted to go another way, concealing hundreds of thousands of dollars in income.” Her words underscore the significant repercussions of tax evasion, which undermines the integrity of the tax system and the contributions of honest taxpayers.
Echoing this sentiment, Amy MacNeely, Acting Special Agent in Charge of the IRS-Criminal Investigation Philadelphia Field Office, noted, “The prosecution of individuals who intentionally conceal income and evade taxes is a vital element of the IRS’ enforcement strategy.” She reaffirmed the commitment to prosecuting those who endeavor to circumvent their tax obligations.
The case, prosecuted by Assistant United States Attorney Michael T. Donovan, serves as a cautionary tale of the legal ramifications awaiting those who engage in tax evasion.
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