William Britt, a former Georgia city councilman, was sentenced to 33 months in prison for failing to report income from several bars he co-owned near university campuses.
As part of the scheme, each bar was nominally owned by an individual, but in reality, all the bars were owned by a group of partners who skimmed cash from the bars, distributed it amongst themselves based on their ownership percentages, and never reported any of the income on their tax returns.
To throw off the IRS, Britt had the nominee owners file false tax returns and gave erroneous information to his accountant. He underreported the bars’ income and omitted cash distributions to the owners. By the time Britt’s house was raided by the IRS he and his partners had been under investigation for more than a year.
In addition to the prison sentence Britt was ordered to pay $352,404.54 in restitution to the IRS. His partners are awaiting trial.