A Middlebury resident, Edward Sodlosky, 71, has pleaded guilty to evading over $400,000 in taxes. This admission came during a federal court session in New Haven, Connecticut. Sodlosky, who previously operated an accounting firm in Naugatuck, waived his right to an indictment.
Tax Evasion Scheme Details
According to the U.S. Attorney’s Office, Sodlosky failed to report approximately $1.4 million in income. This failure resulted in a tax liability of $422,720 for the government. He will be sentenced by U.S. District Judge Sarala V. Nagala in Hartford on April 15. At sentencing, he faces a maximum of five years in prison, in addition to mandatory restitution to the Internal Revenue Service (IRS).
Accounting Business and Income Misreporting
While working as a self-employed certified public accountant (CPA), Sodlosky managed his own firm, Edward J. Sodlosky, CPA. From 2016 to 2022, he prepared and submitted annual tax returns for himself and his spouse, alongside partnership returns for FinGLTD, a joint business venture.
Methods of Evasion
During the seven years of his scheme, Sodlosky cashed more than 2,000 client payment checks. This approach allowed him to disguise the income generated by his accounting firm. Funds from these checks were deposited into various accounts, obscuring their origin.
- Sodlosky used around 15 different bank accounts for deposits.
- He diverted significant business receipts away from the firm’s accounts.
- The outcome was a substantial underreporting of earnings to the IRS.
Pending his sentencing, Sodlosky is currently free on a $50,000 bond. His case highlights the serious consequences of tax evasion schemes in the accounting profession.
