Former IRS Tax Specialist Pleads Guilty to Failing to File Individual Federal Income Tax Returns
Owes $789,629 for Six Tax Years of Unpaid Taxes
Baltimore, Maryland - John Venuti, age 62, of Harwood, Maryland, pleaded guilty today to three counts of failing to file a federal income tax return.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Rebecca Sparkman, Internal Revenue Service-Criminal Investigation, Washington D.C. Field Office.
"Fulfilling individual tax obligations is a legal requirement and those who willfully evade that responsibility will be prosecuted," stated Special Agent in Charge Rebecca Sparkman, Internal Revenue Service - Criminal Investigation. "The IRS-Criminal Investigation, together with the Department of Justice, will investigate and prosecute those who violate our tax system.”
According to Venuti’s plea agreement, from 2002 until January 2010, Venuti was a tax consultant and principal at the accounting firm of KPMG, LLP. Venuti formerly worked for the IRS from 1974 to 1983, including a period of three years during which he served as a Division Chief of the Tax Treaty and Technical Services Division. For the tax years 2001 to 2006, Venuti’s total gross income was $3,625,133. Although Venuti timely filed and was granted six month extensions to file his federal tax return for each of these years, and made payments along with his extension requests totaling $97,060, Venuti did not file the tax returns. Accordingly, he owed $789,629 in back taxes.
Venuti filed his federal return for the tax year 2007. In November of 2007, the IRS contacted Venuti about his failure to file his federal taxes for the previous years, and in May 2008 was advised that he was under criminal investigation. In July 2008, Venuti submitted tax returns for the tax years 2001 to 2006.
Venuti faces a maximum sentence of one year in prison for each of the three counts of failing to file tax returns. U.S. District Judge William M. Nickerson has scheduled sentencing for November 2, 2010 at 9:45 a.m.
United States Attorney Rod J. Rosenstein commended Assistant United States Attorney Mark W. Crooks, who is prosecuting the case.