Councilman's Back Taxes Revealed: $212,076
New developments today in the federal tax fraud case involving an Omaha City Councilman.
According to recently filed court documents, South Omaha's Vinny Palermo has had to shell out nearly a quarter-million dollars to the government during the last few years.
As Omaha City Councilman Vinny Palermo awaits sentencing on federal tax charges—he’s pleaded guilty to three misdemeanor counts of failing to file his tax returns for three different years— there is new information regarding several years of back taxes, six figure back taxes.
Palermo’s lawyer noting in a recent federal court filing that in “December of 2017,” before he was ever charged with a crime, Palermo “paid to the IRS the sum of $212,076 for the taxes he owed to the IRS during the seven years prior.”
Those previously unreported figures are part of a six-page motion by Palermo arguing that his tax problems were tied to his “prior tax preparer and disorganization” and that Palermo “has only a high school degree and no education, training or experience with…tax laws…related to self-employed individuals.”
The motion goes on to ask the court for “probation” and or “community service” both “in lieu of incarceration.”
News Channel Nebraska has previously reported that, initially at least, the government was not seeking prison time for Palermo; this was from the courtroom last May.
Judge: Any statements you make can be used at this hearing and elsewhere. Do you understand that?
Palermo: Yes, your honor.
Prosecutor: Sir, do you understand what each count of the information and the possible maximum punishment associated with each count?
Palermo: Yes, sir.
Judge: What’s the government’s position in regards to detention?
Prosecutor: We’re not seeking detention in this matter, at this time, thank you.
It was after Palermo heard those words, “no detention at this time” that Palermo changed lawyers and 13 days later attorney James Martin Davis told the court his client was beside himself.
James Martin Davis: (Palermo) freaked out because his lawyer didn’t know what he was doing and so he decided he better get somebody who practices in federal court in criminal cases.
Now seven months later Palermo’s lawyer is pushing hard for probation, that while Palermo refuses to give up his city job, this was the councilman in September.
“Absolutely I will not resign.”
Along with the newly exposed $212,076 in “back taxes” and a previously reported $21,209 in “criminal restitution” Palermo has had to shell out $233,285 in tax related payments to the government.
His sentencing is now scheduled for December 18. He faces up to three years in prison and fines totaling $300,000.
According to the IRS, Palermo’s failure to file his taxes on time wasn’t an oversight or mistake but was a “willful intentional act.”
A separate News Channel Nebraska investigation raises questions about Palermo's city council election in 2017.