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Press Release

Middlefield Man Pleads Guilty to Federal Tax Charge

For Immediate Release
U.S. Attorney's Office, District of Connecticut

John H. Durham, United States Attorney for the District of Connecticut, and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service – Criminal Investigation in New England, announced that MICHAEL CALLAN, 70, of Middlefield, waived his right to be indicted and pleaded guilty today in Hartford federal court to a federal tax charge related to his filing false tax returns that substantially underreported his income.

According to court documents and statements made in court, Callan is an emergency response consultant who operates Callan & Company, based in Middlefield, and the website MikeCallan.com.  Callan was audited by the IRS in May 2015.  At the time of the audit, Callan had not filed federal income tax returns for the 2010 through 2015 tax years.  Callan subsequently signed and filed individual federal income tax returns for the 2010 through 2012 tax years that significantly underreported the income he received from his business.  The returns were then filed by his tax preparer.

For 2010, Callan reported $151,533 in total income from Callan & Company, but actually earned $217,925; in 2011, Callan reported $146,071 in total income from Callan & Company, but actually earned $219,094, and in 2012, Callan reported $160,558 in total income from Callan & Company but actually earned $257,745.

Callan also received more than $276,000 in total income from Callan & Company for the 2013 through 2015 tax years, but failed to file a return for each of those years.

Callan has agreed to cooperate with the IRS to pay $153,636 in taxes owed, plus interest and penalties.

Callan pleaded guilty to one count of filing a false tax return, an offense that carries a maximum term of imprisonment of three years.  He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on September 11, 2019.

Callan is released on bond pending sentencing.

This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division.  The case is being prosecuted by Assistant U.S. Attorney Lauren Clark.

Updated May 29, 2019

Topic
Tax