States Attorney's Office District of Connecticut
|July 7, 2011||
NEWTOWN MAN ADMITS FAILING TO PAY
David B. Fein, United States Attorney for the District of Connecticut, today announced that RICHARD J. DUNSEITH, 55, of Newtown, waived his right to indictment and pleaded guilty yesterday, July 6, before United States District Judge Christopher F. Droney in Hartford to one count of filing a false federal tax return stemming from his failure to pay approximately $320,000 in federal income tax.
According to court documents and statements made in court, DUNSEITH failed to file an IRS Form 1040 for the 2004, 2005 and 2006 tax years. Instead, DUNSEITH declared himself a trust, filed an IRS Form 1041 (U.S. Income Tax Return for Estates and Trusts) for each year in which he disclosed his individual income, but reduced his taxable income to zero because he charged a fee to the trust equal to his total individual income. Also, during the 2004 tax year, DUNSEITH withdrew approximately $161,000 from his Individual Retirement Account and failed to pay early withdrawal penalties on it.
Through this scheme, DUNSEITH failed to pay a total of approximately $320,271 in federal income taxes.
Judge Droney has scheduled sentencing for September 23, 2011, at which time DUNSEITH faces a maximum term of imprisonment of three years and a fine of up to approximately $640,000. DUNSEITH also has agreed to pay back taxes, plus applicable interest and penalties.
This case was investigated by the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Rahul Kale.
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