Don’t Do This:  Insurance Broker Going to Prison for Failing to Report $738,000 in Income

failure to reportA 62-year old insurance broker is going to prison for eight months for failing to file taxes.  In a case similar to those that often occur across the country, this Connecticut resident failed to report a significant portion of his income and was unable to convince the Internal Revenue Service (IRS)—or a jury—about the lawfulness of his actions.


Anthony J. May was a life insurance agent who also operated a business to broker the sale of life insurance policies to third-party purchasers.  During an IRS audit of his 2005 tax return, an IRS Special Agent discussed discrepancies in the return, including failure to report a refund he had received of $34,366 in attorney’s fees.  Mr. May noted it was a mistake and he would be more careful in the future.


The IRS criminal investigation into Mr. May’s tax returns continued.  By January, 2014, the IRS notified Mr. May he had failed to report approximately $520,000 in income between the years 2006 and 2009.  Mr. May worked with an attorney to avoid criminal prosecution, but was unable to avoid a tax controversy.


Unwilling to work through the basis for potential charges to find a solution with the IRS, Mr. May was indicted by a federal grand jury.  Rather than try to settle the case, Mr. May chose a jury trial and was convicted on charges that he failed to report more than $738,000 in income.  His primary defense was that he had not received Forms 1099 from individuals or entities that had paid him money, and thus could not be held accountable for that income. Mr. May is challenged by significant health problems and was sentenced to eight months in prison for his tax crimes.


Get help when you fail to report income or file tax returns


Mr. May was notified at the outset of his tax difficulties that he had failed to report income.  In 2006, he corrected the filing and indicated he would be more cautious.  Instead, Mr. May continued this pattern of failing to report income and in the fullness of time, Mr. May was tried and convicted on federal tax charges.


If you are aware of unreported income, or fail to file appropriate returns for assets and income held in the United States or offshore, speak with an IRS tax lawyer experienced with criminal tax matters. 


Speak with a knowledgeable criminal tax defense attorney


With offices in Chicago and Cleveland, the law firm of Robert J. Fedor Esq., LLC provides strategic local and international defense for individuals and entities facing an IRS criminal tax investigation.  Contact our law firm today.


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