New York State Commissioner of Taxation and Finance Thomas H. Mattox announced that Jeffrey Wolf, 64, of Steamboat Springs, Colorado, this week made restitution of more than $1.3 million to New York State.
Earlier this month, Wolf pled guilty to Criminal Tax Fraud in the Third Degree and Repeated Failure to File Personal Income Tax Returns. The Colorado resident failed to file New York personal income tax returns between 2004 and 2010.
Wolf admitted that he had New York sourced income totaling approximately $20 million over the years in question. He admitted that he knew he was required to file non-resident income tax returns and to pay New York State income tax each year. Despite this knowledge, he did not arrange to have any taxes withheld from that income and did not make any estimated tax payments during those years. As a result, he evaded over $1.3 million in New York non-resident personal income taxes.
Wolf voluntarily surrendered to New York City police, avoiding possible extradition. He is scheduled to be sentenced on July 25.
In addition to the $1,315,276 payment representing his total tax liabilities, Mr. Wolf has acknowledged his obligation to pay penalties and interest on this amount as well.
Criminal Tax Fraud in the Third Degree, a class D felony, carries with it a maximum sentence of seven years in state prison. Repeated Failure to File is a class E felony, which carries a maximum sentence of four years in state prison. Wolf also faces maximum fines of $220,960 on the former charge and $50,000 on the latter charge.
Commissioner Mattox said, "Under New York State tax law, non-residents are required to meet all applicable reporting and filing requirements. I commend New York County District Attorney Cyrus Vance and Assistant District Attorney Gilda Mariani, Chief of the Money Laundering and Tax Crimes Unit, for their aggressive prosecution of this case."
Non-residents who have knowingly evaded New York State Income Tax on New York sourced income are encouraged to come forward before the Department pursues collection and enforcement actions. New York's Voluntary Disclosure and Compliance Program enables eligible delinquent taxpayers to become compliant and avoid criminal prosecution or civil penalty.
"It is hoped that this case will encourage other taxpayers to come forward and satisfy their New York tax obligations through our Voluntary Disclosure Program," Commissioner Mattox added.
More information on the Voluntary Disclosure and Compliance Program is available on the Department's website: www.tax.ny.gov