Married Couple Sentenced to 33 Months Prison for Falsifying Tax Returns

A business owner and his wife have been sentenced for federal tax violations in the Eastern District, announced the U.S. Attorney.  In February 2020, Dick Brocato, Jr., 68, and his wife, Judith L. Brocato, 65, were convicted by a jury of conspiracy to defraud the United States for purposes of impeding the government functions of the Internal Revenue Service (IRS) in the collection of income tax and six counts of making and submitting false tax returns on both their personal and business for 2012-2014.  The Brocatos were each sentenced to 33 months in federal prison by U.S. District Judge Marcia Crone.  They were also ordered to pay restitution in the amount of $617,762 to the IRS and fines of $15,000 each.

According to information presented in court, the Brocatos owned a lawn service company, which was operated as an S Corporation for tax purposes.  The Brocatos were the sole shareholders of the company, and Judith Brocato served as corporate president, maintaining the books and records of the corporation, and signing the corporate tax returns in that capacity.  The Brocatos conspired to defraud the United States for the purpose of impeding, impairing, and obstructing, the lawful government functions of the Internal Revenue Service (IRS) in the ascertainment, computation, assessment, and collection of federal income and other taxes for years 2012, 2013, and 2014. 

As part of that conspiracy, they filed false corporate and personal income tax returns for years 2012, 2013, and 2014.  To facilitate the scheme, the Brocatos cashed numerous checks from customers instead of depositing them into the company accounts.  They then underreported the income by failing to report the cash income amount on the various tax returns. According to the indictment, the underreported income amounted to $503,281 in 2012, $687,534 in 2013, and $513,498 in 2014. A federal grand jury returned an indictment on Sep. 4, 2019 charging Dick and Judith Brocato with tax violations.

Civil & Criminal Tax Representation

 

Selig & Associates represents individuals, businesses and entrepreneurs before the Internal Revenue Service and New York State Department of Taxation and Finance. Specializing in difficult income, sales and payroll tax issues including: unpaid taxes, failure to file tax returns and other tax crimes. We negotiate reasonable tax settlements, offers in compromise, penalty abatements and installment agreements. We offer prospective clients a free legally privileged consultation, and emergency appointments are always available. Discuss your case with a Federal Tax Practitioner, CPCU and Attorney today (212) 974-3435 or contact us Online.

CRAPPY TAX RESOLUTION FIRMS and COLD HARD FACTS

Don’t be fooled by out of state companies that promise to “Settle Your Tax Debts for Pennies on the Dollar”. These companies are commonly called “Tax Resolution Firms” and in all likelihood, the person you spoke with is not an Accountant or Attorney, but rather, is a commissioned salesperson who found your name on a tax lien list. ^{Federal Tax Liens are published and sold to the public}. Commissioned salespeople are not bound by the regulations that govern practice before the Internal Revenue Service (“IRS”) ^{Treasury Department Circular No. 230, Title 31 Code of Federal Regulations, Subtitle A, Part 10. (Rev. 6-2014)}  Meaning, the silver-tongued charlatan that just told you everything you wanted to hear is full of malarkey (and you know what that means). Now here’s where things get difficult – in order to successfully reduce your tax debts and penalties, you must have legal standing. Moreover, you must simultaneously satisfy the burden of proof and burden of persuasion requirement. Said plainly, “hard luck stories may be good for your friends and family, but they won’t cut it with the IRS”. In reality, Tax Representation is deceptively complex, and a little knowledge is extremely dangerous. For example, an Offer in Compromise is easy to say – but difficult to achieve. That’s why smart people hire experienced Accountants and Attorneys.  But what about those grandiose claims that every Tax Resolution Firm makes, like: Joe Blow owed the IRS $100,000 and settled for $500 – well Sunshine, poor Joe Blow probably lives in a homeless shelter and has one foot in the grave and the other on a banana peel. What you should have taken away from this article:  

1.    The IRS is not altruistic and tax law [and the applicable rules of civil procedure] maybe more complicated than you think.  

2.    The best accountant and attorney isn’t always the most likable person you’ll meet (winning isn’t a popularity contest).

3.   If you don’t know what you’re doing, find someone that does.

IRS or NYS Offer in Compromise Prepared and Filed within 48 Hours  

Selig & Associates provides New Yorkers with the most aggressive tax representation allowed by law. Successfully defending individuals and businesses before the IRS and the New York State Department of Taxation and Finance since 2006. When you’re in trouble with the IRS, Selig & Associates is your best line of defense. For more information call (212) 974-3435 or contact us Online.

Income, Sales and Payroll Taxes   

We negotiate successful tax settlements, penalty abatements and affordable re-payment plans. Consistently solving the most challenging tax problems, including unpaid income, sales and payroll taxes. To discuss your case in confidence, call us directly.   

Free Legally Privileged Consultation  

We offer same day and emergency appointments in our New York City office (or by telephone). To schedule a Free Legally Privileged Consultation with a licensed Tax Accountant and Attorney call (212) 974-3435 or contact us Online. 

Unfiled Tax Returns Prepared and Filed within 48 Hours 

Selig & Associates helps New Yorkers avoid criminal prosecution by preparing and filing up to 10 years of missing Federal and State tax returns within 48 hours of our being retained. For immediate assistance call or contact us now.  

Medical Doctor Sentenced for Tax Evasion

A dejected doctor was sentenced to the slammer, plus three years of supervised release, and ordered to pay $1,603,533 in restitution to the United States government. The avaricious anesthesiologist was indicted for concealing approximately $2,100,163 in income from the Internal Revenue Service and failing to pay approximately $562,083 in federal income taxes. And when the smoke finally cleared, the misguided medical man was convicted by a jury on seven counts of willful evasion of tax assessment and two counts of willful failure to file a tax return.

Selig & Associates

We take a practical approach to problem solving and strive to obtain the best possible outcome for our clients

We successfully solve IRS and New York State Tax problems, including suspended Drivers Licenses and Passports. Specializing in large dollar Payroll, Sales and Income Tax Representation for Individuals, Professional Practices and Businesses. 

We negotiate excellent Payment Plans, Audits, Offers in Compromise, Payroll & Trust Fund Recovery Penalties, and most other tax issues. Do you have Unfiled Tax Returns? We can have them prepared and filed for you within 48 hours, guaranteed. Same day and emergency appointments are available Monday through Friday in our New York City office. `

To schedule a Free and Legally Privileged Consultation with a Federal Tax Practitioner and Attorney contact us Online

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