URBANA — Howard Keith Wilson, 73, of Danville, was sentenced to jail for tax fraud on Monday.
According to a release from the United States Attorney’s Office, Central District of Illinois, Wilson received three years of supervised release, during which he will serve 30 consecutive weekends in jail, for failure to pay employment taxes to the Internal Revenue Service and failure to file federal income tax returns.
On July 24, 2025, Wilson pleaded guilty before U.S. Magistrate Judge Eric I. Long to 15 separate counts of collecting employment taxes from his employees, which included taxes for his employees’ Social Security and Medicare payments, but then failing to turn over those taxes, or pay the employer’s portion of those taxes, to the IRS. At the time of his plea, Wilson admitted that he had failed to pay those taxes from 2013 through 2020. Wilson also pleaded guilty to three counts of failing to file a personal federal income tax return from 2018 to 2020.
At the sentencing hearing, the government presented evidence establishing that Wilson was the sole owner of Wilson’s Body Shop, a collision repair and car painting business located in Danville, and employed several individuals. Wilson generated and distributed Forms W-2 to his employees whereby he deducted federal employment tax withholdings from their salaries, but then failed to pay those taxes, or the employer’s share of those taxes, to the IRS. Wilson failed to pay employment taxes from at least 2013 through 2020, totaling an employment tax loss of $351,152. Moreover, Wilson failed to file a personal federal income tax return or pay federal taxes for 2018, 2019, and 2020, despite income of $698,354, $1,058,401, and $772,603, respectively, resulting in an additional federal income tax loss of $505,871. The evidence showed that Wilson has a substantial net worth and continues to operate Wilson’s Body Shop in Danville.
U.S. District Judge Colin S. Bruce ordered Wilson to serve one day in jail (time served), to be followed by three years of supervised release, and to pay a $1,575 mandatory special assessment. As a condition of supervised release, Judge Bruce ordered Wilson to pay restitution of $614,411.26 to the IRS and to serve 30 consecutive weekends (known as intermittent confinement) in a local jail where the United States Marshals Service has a contract to hold federal inmates. Judge Bruce also ordered Wilson to pay 50% of his disposable income each month towards his restitution obligation.
The statutory penalties for each count of failing to pay employment taxes are up to five years of imprisonment, three years of supervised release, full restitution, and a $10,000 fine.
The case investigation was conducted by the Internal Revenue Service – Criminal Investigations Division. Supervisory Assistant U.S. Attorney Eugene L. Miller represented the government in the prosecution.