A Wisconsin man has admitted to filing a false tax return, as announced by United States Attorney Gregory J. Haanstad. On January 16, 2025, U.S. District Judge Joseph Stadtmueller accepted Vikram Naik's guilty plea to one count of filing a false individual income tax return in violation of federal law.
Naik was initially charged with three counts of filing false tax returns by a federal grand jury on October 8, 2024. The charges stem from his actions between the years 2017 and 2019 when he reportedly understated his taxable income and taxes owed by inflating the amount of federal income tax withheld on his returns.
As per the plea agreement, Naik worked as an information technology consultant in Germantown, Wisconsin, through his company Naik Consulting Inc (NCI), which he operated since 2015. Some clients treated him as an employee while others considered him a contractor. Despite issuing himself W-2 forms from NCI showing significant federal tax withholdings, no actual payments were made to the IRS.
From 2016 to 2019, Naik reported inflated withholding amounts: $60,000 in 2017, $61,500 in 2018, and $146,000 in 2019 on Forms W-2 from NCI. Similar inflation occurred with some consulting clients' reports for the years 2018 and 2019 and his wife's employer's report for the year 2018. These misrepresentations led to claimed refunds rather than owed taxes and resulted in a tax loss estimated at approximately $277,257.
"Individuals and businesses who willfully avoid our tax laws and file false returns cause harm to every American taxpayer," said U.S. Attorney Haanstad. He praised those involved in investigating and prosecuting this case for their efforts.
Jason Bushey from IRS Criminal Investigation emphasized that "Federal income tax compliance is equally shared among all Americans." He warned against attempts to defraud the government through schemes like those employed by Mr. Naik.
Sentencing is set for March 21, 2025. Naik could face up to three years imprisonment along with a potential fine of $250,000 plus supervised release following any prison term served.
The investigation was conducted by the IRS Criminal Investigation Division under Assistant United States Attorney John P. Scully's prosecution.
