Hampton man sentenced for evading over $1 million in federal income taxes

Posted at 10:19 AM, Nov 27, 2019
and last updated 2019-11-27 10:19:24-05

HAMPTON, Va. – A Hampton salesman was sentenced to 40 months in prison after willfully evading federal income taxes for approximately 13 years, according to the U.S. Department of Justice.

Gregory Overton Powell, 62, was also ordered to 3 years of supervised release, and will pay $1,405,954 of restitution to the Internal Revenue Service.

According to court documents, Powell worked as a timeshare salesman between 2006 and 2016, making approximately $300,000 a year. Despite his significant earnings and ability to pay, Powell “systematically and willfully” failed to file his tax returns on a timely basis, and made minimal if any payments towards his tax liabilities, documents said.

The IRS attempted to collect the taxes due through various means, including allowing Powell to enter into an installment agreement. Powell agreed to do so, but then reneged on the terms by falsely claiming he was tax exempt and preventing salary withholdings.

Powell also provided false collection information statements to the IRS, failing to report his ownership of a speedboat and directing his wife to purchase and hold title to property to obstruct IRS collection efforts.