Middlefield Man Committed $263K In Tax Fraud: Feds

MIDDLEFIELD, CT — A Middlefield man has been sentenced to six months in prison for filing false tax returns that substantially under-reported his income, according to a statement from federal prosecutors. Michael Callan, 70, will also serve one year of supervised release.

Callan is an emergency response consultant who operates Callan & Company, based in Middlefield and the website MikeCallan.com. He was audited by the Internal Revenue Service in May 2015 as he had not filed tax returns from 2010 to 2015.

He then filed individual federal income tax returns for the 2010 through 2012 tax years that significantly under-reported the income he received from his business.

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, according to the statement.

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. He owes the IRS $263,172 in back taxes, interest and penalties.

Callan pleaded guilty in May to one count of filing a false tax return. He is currently free on bond and will report to serve his prison sentence in February.