Middlefield Consultant Admits Tax Evasion

HARTFORD, CT – Michael Callan, 70, of Middlefield, Connecticut, is facing federal time after admitting today to deliberately dodging taxes on income earned from his emergency response consulting business. Callan waived his right to an indictment and pleaded guilty in Hartford federal court to one count of filing a false tax return.

The scheme, uncovered by the Internal Revenue Service – Criminal Investigation, involved years of underreporting income from Callan & Company and its website, MikeCallan.com. An IRS audit in May 2015 initially flagged the discrepancies, revealing Callan hadn’t filed returns for the 2010 through 2015 tax years. When he finally submitted returns for 2010-2012, they were riddled with falsehoods, deliberately minimizing his earnings.

Court documents detail the extent of the deception. For 2010, Callan reported $151,533 in income but actually earned $217,925. In 2011, he reported $146,071 while raking in $219,094. And in 2012, he declared $160,558, despite actually earning $257,745. The pattern continued, with Callan failing to file *any* returns for 2013, 2014, and 2015, despite pulling in over $276,000 in income during those years.

Facing mounting evidence, Callan has agreed to make amends – to a degree. He’s promised to cooperate with the IRS and pay $153,636 in back taxes, plus accrued interest and penalties. But that won’t shield him from potential jail time. Filing a false tax return carries a maximum sentence of three years in federal prison.

U.S. District Judge Vanessa L. Bryant is scheduled to hand down the sentence on September 11, 2019. Callan remains free on bond until then. The investigation was spearheaded by Kristina O’Connell, Special Agent in Charge of the IRS – Criminal Investigation in New England. Assistant U.S. Attorney Lauren Clark is prosecuting the case.

United States Attorney John H. Durham made the announcement today, sending a clear message: attempts to cheat the system will be met with federal prosecution. This case serves as a stark reminder that even consultants operating in seemingly legitimate businesses aren’t above the law when it comes to paying their fair share.