NEWTOWN MAN WHO FAILED TO PAY MORE
$320,000 IN FEDERAL INCOME TAXES IS SENTENCED
David B. Fein, United States Attorney for the District of Connecticut, announced that RICHARD J. DUNSEITH, 56, of Newtown, was sentenced today by United States District Judge Christopher F. Droney in Hartford to two years of probation, the first eight months of which DUNSEITH must spend in home confinement, for failing to pay approximately $320,000 in federal income taxes. Judge Droney also ordered DUNSEITH to pay a fine in the amount of $25,000.
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 approximately $320,271 in federal income taxes. To date, DUNSEITH has paid approximately $580,000 in back taxes, interest and penalties to the government.
On July 6, 2011, DUNSEITH waived his right to indictment and pleaded guilty to one count of filing a false tax return.
This matter was investigated by the Internal Revenue Service – Criminal Investigation. The case was prosecuted by Assistant United States Attorney Rahul Kale.
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