NORTH MYRTLE BEACH, SC (WMBF) – The owner of a North Myrtle Beach furniture store was arrested Monday for tax evasion after he reported about half the revenue on his sales tax returns from 2013 to 2015, and claimed over twice the dedications, officials said.
John Henry Hammond, the owner of BJ's Furniture in North Myrtle Beach, filed fraudulent sale tax returns that understated the business' actual gross proceeds and overstated deductions, resulting in more than $120,000 in taxes due to the state, according to a news release from the South Carolina Department of Revenue.
For tax returns from 2013 to 2015, Hammond reported a total of $1,398,959 in gross proceeds, and $529,011 in deductions, the release states. An SCDOR investigation revealed actual gross proceeds totaling $2,667,211 and deductions totaling $244,904. Hammond evaded $120,258 in sales tax due to his fraudulent reporting, the release states.
"The 6% state sales tax funds education efforts in South Carolina," the release states. "Businesses collect the tax when shoppers check out, and the money is then turned over to the SCDOR.
Hammond is being held at the J. Reuben Long Detention Center for three counts of tax evasion. If convicted, he cases fines up to $10,000 and/or up to five years in prison for each charge.