U.S. District Judge Joseph Stadtmueller has accepted the guilty plea of Vikram Naik, a Wisconsin man, to one count of filing a false individual income tax return. The plea was entered on January 16, 2025, according to an announcement by United States Attorney Gregory J. Haanstad.
Naik was originally indicted on October 8, 2024, for three counts of filing false tax returns. The indictment and subsequent plea agreement revealed that Naik had willfully submitted incorrect individual income tax returns for the years 2017, 2018, and 2019. He reported federal income tax withholdings significantly lower than what he had actually paid to the IRS.
The case details reveal that Naik operated as an information technology consultant in Germantown, Wisconsin through his company Naik Consulting, Inc (NCI), since 2015. Some clients treated him as an employee while others as a contractor through NCI. Despite this arrangement, Naik inflated his federal tax withholdings on Forms W-2 from NCI for several years.
From 2016 to 2019, he falsely reported substantial federal income tax withholding amounts which were not paid to the IRS by NCI or other consulting clients during the tax years of 2018 and 2019. His actions led to claims of no taxes owed and large refunds each year based on these false statements. This resulted in a tax loss estimated at $277,257.
“Individuals and businesses who willfully avoid our tax laws and file false returns cause harm to every American taxpayer,” stated U.S. Attorney Haanstad. He praised those involved in the investigation and prosecution of this case.
Jason Bushey, Acting Special Agent in Charge of the IRS Criminal Investigation's Chicago Field Office added: “Federal income tax compliance is equally shared among all Americans.” He highlighted that such schemes are illegal and emphasized their commitment to enforcing compliance as the new filing season begins.
Naik is scheduled for sentencing on March 21, 2025. He could face up to three years in prison along with a $250,000 fine and supervised release following any imprisonment term.
The investigation was conducted by the IRS Criminal Investigation Division with Assistant United States Attorney John P. Scully prosecuting the case.