Released March 4, 2008
A Big Bear City physician was arrested February 29 by Franchise Tax Board (FTB) special agents on numerous felony charges of state income tax evasion, the FTB reported.
Norman E. Johnson, 60, aka Eric N. Johnson and N. Eric Johnson, is employed as an emergency room physician by a Victorville hospital. Secretary of State records show Johnson is also listed as the corporate executive officer of N. Eric Johnson, M.D., M.P.H., A Professional Corporation. This corporation is currently suspended for failing to file its state income tax returns.
According to FTB special investigators, Johnson allegedly failed to file his 2001 – 2005 state income tax returns on the more than $1.8 million income he earned. In addition, Johnson allegedly failed to file his 2001 – 2005 corporate income tax returns reporting the more than $1 million in income his corporation earned. Johnson owes the state more than $157,000 in personal income tax and $16,000 in corporate tax. Penalties, interest, and the cost of the investigation will be added to these figures. Each count of failure to file carries a maximum sentence of three years in state prison.
The failure to file tax returns is part of the $6.5 billion tax gap facing California. The tax gap is defined as the difference between the tax that is due and the tax that is paid.
Johnson was booked into the West Valley Detention Center in Rancho Cucamonga. His bail is set at $150,000. Johnson’s next court appearance has not been set.
The Franchise Tax Board is responsible for administering California's Personal Income Tax and the Corporation Tax. We also administer the Homeowner and Renter Assistance program, other non-tax programs, and delinquent debt collection functions.