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Samantha Cheek (CheekS@sctax.org)
FOR IMMEDIATE RELEASESeptember 13, 2011
State Representative arrested on tax charges
Spartanburg, SC --- Harold Mitchell, Jr., 46, was arrested today by South Carolina Department of Revenue officials on four counts of evasion of income tax.
Mitchell, Executive Director of Regenesis Economic Development Organization in Spartanburg as well as a member of the South Carolina House of Representatives, filed four delinquent individual income tax returns on April 22, 2009 for tax years 2005, 2006, 2007 and 2008.
For tax years 2005-2008, Mitchell failed to timely file a South Carolina individual income tax return on the $274,457.30 total income earned, which he was required to do so for each year based on his earnings. Mitchell filed returns on April 22, 2009 reporting total income of $49,746.30 earned during the period. Mitchell failed to report approximately $224,711 of income earned from other sources, claiming to officials during the investigation that he never earned income other than as reported on W-2 forms. Therefore, Mitchell attempted to evade state income tax of $7,248.96 for tax years 2005-2008.
Upon conviction, in addition to all taxes due, Mitchell could face penalties of up to 20 years in prison and/or $40,000 in fines if convicted of the charges under SC Code of Laws Section 12-54-44 (B)(1).
Mitchell is currently being held at the Spartanburg County Detention Center pending a bond hearing.