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Internal Revenue Service

$100M Scheme: Northern Westchester Man Known As 'Magician' Nabbed In One Of Largest Ever Frauds $100M Scheme: Northern Westchester Man Known As 'Magician' Nabbed In One Of Largest Ever Frauds
$100M Scheme: Northern Westchester Man Known As 'Magician' Nabbed In One Of Largest Ever Frauds A New York man known as "the Magician" has been charged in connection with one of the largest-ever tax fraud schemes by a tax preparer, federal officials announced. Northern Westchester County resident Rafael Alvarez, of Cortlandt Manor, has been charged in connection with a $100 million tax fraud scheme involving tens of thousands of federal individual income tax returns with false information, the US Attorney's Office for the Southern District of New York announced on Monday, April 15.  According to federal officials, from 2010 to 2020, Alvarez, also known as "the Magi…
Darien Resident's IRS Payments Stolen Out Mailbox, Cashed By Thief, Police Say Darien Resident's IRS Payments Stolen Out Mailbox, Cashed By Thief, Police Say
Darien Resident's IRS Payments Stolen Out Mailbox, Cashed By Thief, Police Say A Fairfield County resident who mailed two checks to pay his taxes was surprised when he received word from the Internal Revenue Service about non-payment of his bill. The Darien resident then contacted the police in May 2023, who found that someone had stolen his checks out of his mailbox and cashed them with another name on the payee line. An investigation led Darien Police to the Morris County Correctional Center in New Jersey to arrest David Velazquez, age 28, of Warren, New Jersey. According to Darien Police Sgt. Dan Skoumbros, Velazquz had allegedly taken the checks out of the m…
$600K Fraud: CT Tax Preparer Gets Prison Time For Including Fake Expenses In Returns $600K Fraud: CT Tax Preparer Gets Prison Time For Including Fake Expenses In Returns
$600K Fraud: CT Tax Preparer Gets Prison Time For Including Fake Expenses In Returns A Connecticut man will spend years in prison for including false expenses on income tax returns for clients, federal officials announced.  David Etienne, a 49-year-old New London County tax return preparer based in Norwich, was sentenced to two years in prison on Wednesday, Jan. 17 for a tax fraud offense, the US Attorney's Office for the District of Connecticut announced.  According to federal officials, Etienne worked through several businesses, including Los Maestros Inc., Los Maestros Group, Tax Experts USA, and Tax Experts USA Inc. Between the 2012 and 2021 tax…
CT Accountant Steals $25K From Client, Police Say CT Accountant Steals $25K From Client, Police Say
CT Accountant Steals $25K From Client, Police Say A Connecticut accountant faces larceny charges after stealing $25,000 from one of his clients, police announced. Carl Anderson, who owns Anderson Accounting and Finance LLC, was arrested in Litchfield County by New Milford Police on Friday, Dec. 22 following a lengthy investigation, the department announced on Wednesday, Dec. 27.  The investigation, conducted by New Milford Police, the Internal Revenue Service, and the Connecticut Department of Banking, determined that Anderson stole $25,000 from one of his clients, according to authorities.  Following his arrest, Anderson was ch…
Wilton Contractor Admits To Tax Offense: Provided False Invoices To IRS Wilton Contractor Admits To Tax Offense: Provided False Invoices To IRS
Wilton Contractor Admits To Tax Offense: Provided False Invoices To IRS A contractor from Fairfield County faces prison time after admitting to providing fabricated invoices and letters to the Internal Revenue Service, federal officials announced.  Wilton resident David Anspach, age 67, pleaded guilty to a tax offense in Hartford federal court on Wednesday, Nov. 15, the US Attorney's Office for the District of Connecticut announced.  According to federal officials, Anspach operates a construction and remodeling business. As a result of a civil audit of Anspach's 2013 tax return, the IRS found that his business receipts were un…
CT Man Gets Prison Time For Tax Evasion: Ordered To Pay Over $160K To IRS CT Man Gets Prison Time For Tax Evasion: Ordered To Pay Over $160K To IRS
CT Man Gets Prison Time For Tax Evasion: Ordered To Pay Over $160K To IRS A 61-year-old Connecticut man will spend time in prison for filing a false tax return and providing false documentation to an Internal Revenue Service attorney, federal officials announced.  Tolland County resident David Kamal, age 61, of Stafford, was sentenced on Monday, Sept. 11 to eight months in prison for tax evasion, the US Attorney's Office for the District of Connecticut announced.  Earlier Report - CT Man Charged With Tax Fraud, Obstruction, ID Theft Offenses According to federal officials, Kamal, a former Hebron resident, purposefully evaded taxes for the 2012 tax…
New Canaan Resident Used Investor Funds To Pay Taxes, Credit Card Expenses, Gets Prison Time New Canaan Resident Used Investor Funds To Pay Taxes, Credit Card Expenses, Gets Prison Time
New Canaan Resident Used Investor Funds To Pay Taxes, Credit Card Expenses, Gets Prison Time A current Fairfield County resident formerly from New Haven County will spend years in prison for tax evasion and defrauding investors by using their funds to pay his personal expenses. New Canaan resident Brian Hughes, age 58, formerly of Madison, was sentenced to two and a half years in prison on Monday, March 6 for defrauding investors of two companies, and for tax evasion, the US Attorney's Office for the District of Connecticut announced.  The charges stem back to March of 2015 when Hughes founded Handcrafted Brands, LLC (HBC), in order to raise money to purchase the alcoholi…
$2.1M Scam: Newtown Business Owner Who Served Fairfield County Homeowners Faces Prison Time $2.1M Scam: Newtown Business Owner Who Served Fairfield County Homeowners Faces Prison Time
$2.1M Scam: Newtown Business Owner Who Served Fairfield County Homeowners Faces Prison Time A home renovation business owner from Newtown faces years in prison after admitting to failing to report millions in revenue. Newtown resident Thomas Saint, age 67, admitted to one count of tax evasion in Bridgeport federal court on Wednesday, Feb. 22, according to the US Attorney's Office for the District of Connecticut.  Saint, the sole owner of Tom Saint Painting and Remodeling LLC which provides painting and renovation services to homeowners in Fairfield, Litchfield, and New Haven counties, admitted to depositing business checks and cash into his personal bank account between …
CT Attorney Specializing In Personal Injury Admits To Tax Evasion, Must Repay IRS $750K CT Attorney Specializing In Personal Injury Admits To Tax Evasion, Must Repay IRS $750K
CT Attorney Specializing In Personal Injury Admits To Tax Evasion, Must Repay IRS $750K An attorney based in Connecticut faces jail time after admitting to tax evasion.  Wallingford resident Mark Carbutti, age 48, who is an attorney specializing in personal injury law, pleaded guilty to tax evasion on Thursday, Dec. 1, according to the Connecticut US Attorney's Office.  For several years starting in 2013, Carbutti only made limited payments of the over $585,000 he owed the Internal Revenue Service as a result of his legal practice and rental income for tax years 2013 through 2017. As a result, he also owed interest and penalties that accrued during this time as well,…
Woman Who Owns Fairfield County Grocery Store Sentenced For $400K Tax Offense Woman Who Owns Fairfield County Grocery Store Sentenced For $400K Tax Offense
Woman Who Owns Fairfield County Grocery Store Sentenced For $400K Tax Offense An owner of a Fairfield County grocery store was sentenced for a tax fraud offense that caused the IRS a loss of more than $400,000. Lizbel Sanchez, of Brookfield, was sentenced on Tuesday, Oct. 18, to two years of probation and ordered to pay a $400,000 fine, according to Vanessa Roberts Avery, United States attorney for the District of Connecticut. Sanchez pleaded guilty on April 14 to one count of willful failure to collect or pay over taxes, Avery reported. Earlier report - Woman Who Operates A C-Town In Danbury Admits To Failure To Pay Taxes Sanchez is a minority owner…
Don't Fall For It: Alert Issued For Scam Emails Claiming To Be From IRS Don't Fall For It: Alert Issued For Scam Emails Claiming To Be From IRS
Don't Fall For It: Alert Issued For Scam Emails Claiming To Be From IRS Tax Day has come and gone, but the Internal Revenue Service is cautioning of opportunistic fraudsters who have been targeting taxpayers through email scams. In recent weeks, some Americans have reported that they've received emails purportedly from members of the IRS phishing for personal information through both professional and personal accounts. According to reports, the emails have been coming from spam accounts and address taxpayers at the top of the email with the term “dear user,” and no specific name. Related story - IRS May Charge Penalty If You're In One of These Categories…
Former Yale Med School Employee Admits Stealing, Selling $40 Million In Electronics Former Yale Med School Employee Admits Stealing, Selling $40 Million In Electronics
Former Yale Med School Employee Admits Stealing, Selling $40 Million In Electronics A former Yale University School of Medicine employee has admitted to stealing $40 million in computer and electronic hardware from the university. Jamie Petrone, age 42, pleaded guilty on Monday, March 28, to wire fraud and filing a false tax return, according to Leonard Boyle, United States Attorney for the District of Connecticut. Petrone is a former resident of Naugatuck in New Haven County, and she currently resides in Georgia, Boyle said.  Beginning in about 2008, Petrone worked for the Yale University School of Medicine's Department of Emergency Medicine and most recently w…
Fairfield County Tax Return Preparer Admits To Fraud Fairfield County Tax Return Preparer Admits To Fraud
Fairfield County Tax Return Preparer Admits To Fraud A Fairfield County tax preparer has admitted to a charge related to claiming false deductions in clients' tax returns. Torise Baker, age 38, of Bridgeport, pleaded guilty on Monday, March 21, to one count of aiding and assisting in the preparation and presentation of false and fraudulent income tax returns, according to Leonard Boyle, United States attorney for the District of Connecticut. From the 2014 through 2016 tax years, Baker prepared about 3,600 federal tax returns for clients through her 101 Things 2 Do, LLC business in Bridgeport, the US Attorney's Office said. Boyle sa…
IRS Issues Warning To Taxpayers About Filing IRS Issues Warning To Taxpayers About Filing
IRS Issues Warning To Taxpayers About Filing With tax season well underway and many Americans scrambling to file before the deadline, the Internal Revenue Service (IRS) is advising of certain details to double-check before submitting the required paperwork. With approximately 25 percent of Americans having already filed in advance of the deadline of Monday, April 18, the IRS posted a new alert warning about four things to keep in mind when filing their taxes. According to the IRS, taxpayers should be aware of these potential tax obligations that involve the gig economy, making virtual currency transactions, earning foreign-sourced inc…
Treasury Department Warns Of 'Frustrating Season' For Taxpayers, Preparers Treasury Department Warns Of 'Frustrating Season' For Taxpayers, Preparers
Treasury Department Warns Of 'Frustrating Season' For Taxpayers, Preparers Treasury Department officials have warned that major issues the Internal Revenue Service is experiencing could lead to delays when it comes to certain taxpayer services, according to a new report. The Washington Post reported that officials said on Monday, Jan. 10, that they anticipate this tax season will be "frustrating" for preparers and taxpayers due in part to pandemic-related delays and previous budget cuts to the IRS. The news outlet said this year, the IRS is beginning tax filing season with "several times" the typical unaddressed backlog of returns.  The Washington Post said …
Former Harvard Department Chair Found Guilty Of Hiding Ties To China Former Harvard Department Chair Found Guilty Of Hiding Ties To China
Former Harvard Department Chair Found Guilty Of Hiding Ties To China A former Harvard University department chair has been found guilty of charges in connection with lying to federal authorities about his ties to China and failing to report income he received from a university in China. Charles Lieber, age 62, was found guilty on Tuesday, Dec. 21, of: Two counts of making false statements to federal authorities,  Two counts of making and subscribing a false income tax return, Two counts of failing to file reports of foreign bank and financial accounts with the Internal Revenue Service. Lieber is the former chair of Harvard's Chemistry and Che…
Operator Of Company In Fairfield County Admits To Tax Evasion Operator Of Company In Fairfield County Admits To Tax Evasion
Operator Of Company In Fairfield County Admits To Tax Evasion A Fairfield County company owner has pleaded guilty to one count of tax evasion. Robert Porzio, age 48, of Westport, plead guilty on Thursday, Dec. 16, following an investigation by the Internal Revenue Service, said Leonard C Boyle, acting US Attorney for the District of Connecticut. According to court documents and statements made in court, Porzio, who operates Bert’s Tree Service, Inc., deposited numerous customers’ checks into personal bank accounts, transferred a significant portion of the funds into a personal investment account, and kept from the corporation’s bookkeeper his receipt …
Fairfield County Man Sentenced For Tax Evasion Fairfield County Man Sentenced For Tax Evasion
Fairfield County Man Sentenced For Tax Evasion A Fairfield County man has been sentenced for evading paying more than $141,000 in taxes. Michael Monroe, age 48, of Norwalk, was sentenced on Friday, Oct. 15, to six months in prison and six months of home confinement, according to Leonard Boyle, acting United States attorney for the District of Connecticut. Monroe was also sentenced to three years of supervised release and 90 hours of community service. Boyle said he was ordered to pay back the taxes of $141,041, plus interest and penalties. He pleaded guilty to one count of tax evasion on March 15. Boyle said Monroe oper…
Millions Of Families To Begin Receiving Child Tax Credit Payments From IRS This Week Millions Of Families To Begin Receiving Child Tax Credit Payments From IRS This Week
Millions Of Families To Begin Receiving Child Tax Credit Payments From IRS This Week Millions of families will begin receiving payments from the Internal Revenue Service this week due to the American Rescue Plan’s expansion of the child tax credit.  The Biden administration previously announced families would begin receiving monthly payments beginning in July of up to $250 for each child between the ages of 6 and 17 years old. Families would receive a payment of $300 for each child under the age of 6. The payments are set to begin on Thursday, July 15. Eligible families will receive the full credit if they are a couple filing jointly with an income of $150,000 or…
IRS Planning To Delay April 15 Tax Deadline, Reports Say IRS Planning To Delay April 15 Tax Deadline, Reports Say
IRS Planning To Delay April 15 Tax Deadline, Reports Say For the second straight year, the Internal Revenue Service is expected to extend the tax deadline by at least a month, according to multiple reports. Bloomberg, CNBC, the Wall Street Journal, and Washington Post all reported on Wednesday afternoon, March 17 that the IRS is expected to push the tax deadline until mid-May, not April 15, though no official statement has been made. Tax season was delayed from the get-go as the IRS began to accept and process tax returns on Feb. 12, which was a two-week delay. A filing extension would give taxpayers additional breathing room to meet their tax …
CT Accountant Sentenced For Tax Evasion, Obstruction Offenses CT Accountant Sentenced For Tax Evasion, Obstruction Offenses
CT Accountant Sentenced For Tax Evasion, Obstruction Offenses A Connecticut man has been sentenced to 30 months in prison for tax evasion and obstruction offenses. New Haven County resident Louis DeMaio, age 70, of Guilford, was sentenced Tuesday, Jan. 12, to prison time, followed by one year of supervised release, said John Durham US Attorney for the District of Connecticut. According to court documents and statements made in court, DeMaio was employed as an accountant in East Haven and, from approximately 2010 to 2018, also operated Almatt LLC, a temporary employment agency that provided day laborers to construction companies.   Although …
Bookkeeper In Fairfield County Sentenced For $418K Embezzlement Scheme Bookkeeper In Fairfield County Sentenced For $418K Embezzlement Scheme
Bookkeeper In Fairfield County Sentenced For $418K Embezzlement Scheme A bookkeeper in Fairfield County has been sentenced to prison for fraud and tax offenses stemming from an embezzlement scheme. Penni Sherman, also known as Penni Parker, 53, of Norwalk, was sentenced by U.S. District Judge Michael P. Shea in Hartford to eight months of imprisonment, followed by two years of supervised release on Friday, Aug. 14.  Shea ordered Sherman to spend the first two months of supervised release in home confinement. According to court documents and statements made in court, Sherman operated PSP Accounting & Bookkeeping, and provided bookkeeping services to ar…
CT Attorney Failed To Pay Income Tax For Eight Years, Feds Say CT Attorney Failed To Pay Income Tax For Eight Years, Feds Say
CT Attorney Failed To Pay Income Tax For Eight Years, Feds Say An attorney in Connecticut will avoid jail time after admitting to failing to pay more than $225,000 in taxes over the better part of a decade. Bethany resident William Palmieri, 56, was sentenced to three years of probation, the first six months of which will be served in home confinement, after he pleaded guilty in Bridgeport district court to two counts of willful failure to pay income taxes, U.S. Attorney for Connecticut John Durham announced. Palmieri will also have to complete 150 hours of community service. Palmieri, an attorney with a practice specializing in civil rights law, repo…