Tax Preparer Pleads Guilty To Income Tax Evasion
Deirdre M. Daly, United States Attorney for the District of Connecticut, and William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England, announced that KENNETH ZITO, 51, of Wethersfield, waived his right to indictment and pleaded guilty today before U.S. Magistrate Judge Thomas P. Smith in Hartford to one count of tax evasion.
According to court documents and statements made in court, ZITO worked at Daniel Zito Financial Services, a South Windsor commercial financial services firm owned by ZITO’s father, where ZITO prepared tax returns for individuals and businesses. Although ZITO and his father worked together, they submitted client tax returns separately. Between 2007 and 2009, ZITO cashed checks he received from clients as payment for his services, but did not deposit the checks or declare them on his federal income tax return. In pleading guilty, ZITO admitted that he failed to report $219,759.32 in income during that three-year period, and that he owes the Internal Revenue Service $59,621 in back taxes, as well as interest and penalties.
ZITO’s sentencing is scheduled for June 10, 2014 before Senior U.S. District Judge Alfred V. Covello in Hartford, at which time ZITO faces a maximum term of imprisonment of five years and a fine of up to $100,000.
This investigation was conducted by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney David J. Sheldon.
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