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Former Bloomberg Executive Sentenced to More Than 3 Years in Federal Prison After Tax Conviction

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Former Bloomberg Executive Sentenced to More Than 3 Years in Federal Prison After Tax Conviction

According to a Department of Justice press release, a former executive at a New York City conglomerate was recently sentenced to serve 38 months in federal prison after failing to report illegal bribes on his individual tax return. This story should serve as a reminder to all taxpayers that all income, regardless of its source, is taxable unless a specific exception applies. If you have failed to include all of your income on a filed tax return or have failed to file a tax return altogether, it is in your best interest to contact an experienced tax defense attorney as soon as possible to come into compliance.

Note: As long as a taxpayer that has willfully committed tax crimes (potentially including non-filed foreign information returns coupled with affirmative evasion of U.S. income tax on offshore income) self-reports the tax fraud (including a pattern of non-filed returns) through a domestic or offshore voluntary disclosurebefore the IRS has started an audit or criminal tax investigation / prosecution, the taxpayer can ordinarily be successfully brought back into tax compliance and receive a nearly guaranteed pass on criminal tax prosecution and simultaneously often receive a break on the civil penalties that would otherwise apply. 

It is imperative that you hire an experienced and reputable criminal tax defense attorney to take you through the voluntary disclosure process. Only an Attorney has the Attorney Client Privilege and Work Product Privileges that will prevent the very professional that you hire from being potentially being forced to become a witness against you, especially where they prepared the returns that need to be amended, in a subsequent criminal tax audit, investigation or prosecution.

Moreover, only an Attorney can enter you into a voluntary disclosure without engaging in the unauthorized practice of law (a crime in itself). Only an Attorney trained in Criminal Tax Defense fully understands the risks and rewards involved in voluntary disclosures and how to protect you if you do not qualify for a voluntary disclosure.

As uniquely qualified and extensively experienced Criminal Tax Defense Tax Attorneys, KovelCPAs and EAs, our firm provides a one stop shop to efficiently achieve the optimal and predictable results that simultaneously protect your liberty and your net worth. See our Testimonials to see what our clients have to say about us!

Defendant Took Illegal Bribes, Failed to Appropriately Reflect Income

Court documents reveal that Anthony Guzzone, the former Director of Global Construction and Bloomberg LP, was sentenced to more than three years in prison last week. For more than eight years, Guzzone and other Bloomberg employees received illegal bribes from construction companies who wished to secure contracts to perform services for Bloomberg. Federal authorities estimate that the government lost out on more than $450,000 after he failed to report nearly $1.5 million of bribes on his individual tax return. In addition to receiving cash, Guzzone also received free construction work and tickets to the Super Bowl.

In addition to serving more than three years in prison, Guzzone was also sentenced to serve three years of supervised release, commencing upon his release from physical incarceration. Additionally, Guzzone was ordered to pay more than $500,000 in restitution to the IRS.

Properly Accounting for All Income

The Internal Revenue Code is clear that a taxpayer should take all income into account from “whatever source derived”. This means that, even if you obtain additional wealth through illegal means, as did the defendant from the story above, such income must still be reported on federal tax returns and the resulting tax must be paid. This is also true of income that is obtained in cash or in kind. Just because there is not a W-2 or Form 1099 reporting a payment to a taxpayer does not mean that such income is exempt from tax.

The IRS has recently dramatically increased their headcount to position themselves to perform more examinations. If you have failed to report the true amount of income earned, you should contact an experienced tax defense attorney to decide on the best strategy to get right with the government before an examination uncovers your noncompliance.

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