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PRESS RELEASE
  
FOR IMMEDIATE RELEASE For Information, Contact Public Affairs
Wednesday, September 10, 2008 Channing Phillips (202) 514-6933
 
  

Former Ward 6 Council Primary Candidate Sentenced
for Failing to File Federal and D.C. Tax Returns
During Four Year Time Frame
 

Washington, D.C. – Grover K. Jarrell, a 2006 primary candidate for the Council of the District of Columbia for Ward 6, has been sentenced for failing to file federal and D.C. tax returns for tax years 2002 through 2005, U.S. Attorney Jeffrey A. Taylor, C. André Martin, Special Agent in Charge, Internal Revenue Service (“IRS”), Criminal Investigation, and Stephen M. Cordi, Deputy Chief Financial Officer, D.C. Office of Tax and Revenue (“OTR”), announced today.

Jarrell, 52, of the unit block of Sherman Circle, NW, Washington, D.C., pled guilty in October 2007 to two misdemeanor counts in U.S. District Court for the District of Columbia before the Honorable Magistrate Judge Deborah A. Robinson. During the plea hearing, Jarrell admitted to failing to file federal or D.C. tax returns, despite being required to do so, for tax years 2002 through 2005. Jarrell was sentenced today by Magistrate Judge Robinson to three years of probation on both counts. The Court also ordered Jarrell to perform 100 hours of community service. He will additionally be required to pay the taxes due and owing, as well as any interest and penalties. As a result of the guilty pleas, Jarrell subsequently filed delinquent tax returns with the IRS and OTR for 2001 through 2007, and agreed to pay the tax losses to IRS and OTR, respectively, of approximately $42,000 and $36,000, plus interest and penalties.

According to the factual proffer of evidence by the government at the guilty plea hearing, which was agreed to by Jarrell, for tax years 2002 through 2005, Jarrell was a person who was required to file a personal tax return with the IRS and the DC OTR. During this period, Jarrell earned at least $175,098.36 in wages, as reported on Forms W-2 and 1099 filed with the IRS by third parties which paid funds to Jarrell, and $19,584 in unemployment compensation. This income was subject to federal and D.C. taxation. Although the amount of income was subject to taxation, Jarrell failed to pay withholding taxes on the bulk of this income and failed to file any returns for tax years 2002 through 2005. As Jarrell knew, he was required under the law to submit tax returns to federal and local taxing authorities and to pay any tax due and owing. Nevertheless, Jarrell failed to submit any return for these years or to pay the full amount of the tax due.

In announcing today’s sentence, U.S. Attorney Taylor, Special Agent in Charge Martin and Deputy Chief Financial Officer Cordi praised the hard work of the investigative agents involved in this matter, especially IRS Special Agent Howard S. Smith and OTR Special Agent William S. Randolph, Jr. They also acknowledged the efforts of Legal Assistant Lisa Robinson and former Legal Assistant Teesha Tobias, as well as Assistant U.S. Attorney Daniel Butler, who prosecuted this matter.