C. Mr. Burke's Indictment In May 1987, Mr. Burke informed Ms. Romano that he was under investigation by the New York State Department of Insurance. Mr. Burke then instructed her to collect the insurance agency checkbooks, destroy them, and report them as stolen. Ms. Romano refused to carry out these instructions. The records of the Burke Insurance Agencies were seized by the Suffolk County District Attorney's office pursuant to search warrants authorized on May 11, 1987. Mr. Burke was indicted on two counts of grand larceny for embezzling more than $1.2 million from his insurance premium account. However, Mr. Burke was neither tried nor convicted for this indictment. Instead, pursuant to a plea agreement with the Suffolk County District Attorney, Mr. Burke pled guilty to Grand Larceny 4 (a felony) for his failure to remit sales tax from Jury's to the New York State Department of Taxation and Finance. In exchange for his guilty plea, the embezzlement charges were dismissed. III. Tax Returns Filed for 1985, 1986, and 1987 A. The Alleged Joint Returns On March 29, 1991, Mr. Burke filed untimely Federal income tax returns for the taxable years 1985, 1986, and 1987. These returns purport to be joint returns. Although a signature for Mrs. Burke appears on the returns at issue, the parties stipulated that Mrs. Burke did not sign any of the returns, and Mrs. Burke had no involvement in the preparation of the delinquent returns or in the audit process leading up to the issuance of the notice of deficiency. Mr. Burke signed Mrs. Burke's name to the returns without asking for or receiving her consent. Prior to the filing of the returns in issue, Mr. Burke had never signed his wife's name to a tax return. Mrs. Burke, individually, was not required to file a Federal income tax return of her own for any of the years in issue. In March 1991, Mrs. BurkePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011