BALTIMORE CORRUPTION: Former Baltimore Police Commissioner Darryl De Sousa Faces Three Years in Prison for Not Filing Income Tax Returns for Three Years
Baltimore, Maryland – From the time of one year after being employed by the Baltimore Police Department, former Police Commissioner Darryl De Sousa began a yearly pattern of cheating on his state and federal taxes.
Former Baltimore Police Commissioner Darryl De Sousa, 54, of Baltimore, Maryland, pleaded guilty Dec. 18, 2018, to three counts of failing to file individual federal tax returns.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur.
According to his plea agreement, De Sousa was employed by the Baltimore Police Department beginning in 1998.
De Sousa announced his resignation from BPD on May 15, 2018.
On June 10, 1999, De Sousa submitted an Employee’s Withholding Exemption Certificate (W-4) to the City of Baltimore falsely claiming nine allowances for both federal and state tax purposes.
By virtue of this claim, De Sousa substantially reduced the amount of taxes withheld from his salary each year. When he filed his federal and state income taxes for calendar years 2008 through 2012, he falsely claimed deductions to which he was not entitled, including for unreimbursed employee expenses when he had no such expenses, mortgage interest deductions and deductions for local property taxes when he did not have a mortgage or own any real property, and business losses when he did not operate any businesses.
By virtue of these improper deductions, De Sousa fraudulently reduced the amount of taxes he owed to the Internal Revenue Service (IRS) and the State of Maryland.
Prosecutors report that De Sousa admitted that for calendar years 2011 and 2012, he did not file tax returns at all and did not do so until 2014. When he did file returns for those years, he falsely claimed unreimbursed employee expenses and donations to charity.
De Sousa also failed to pay penalties and interest on those late-filed returns despite having been told to do so by the IRS. In addition, as of May 5, 2018, De Sousa had not filed taxes for 2013, 2014 or 2015, despite knowing that he had a legal obligation to do so. By virtue of the nine allowances he falsely claimed, De Sousa also owed additional money to the United States and the State of Maryland in each of those years, as he also knew.
As a result of De Sousa’s actions, the total combined tax due to the United States and to the State of Maryland is $67,587.72.
As part of his plea agreement, De Sousa is required to pay restitution in that amount, although with payments already made, the amount still owed is $60,645.11.
De Sousa faces a maximum sentence of one year in prison, and a $100,000 fine for each count of failure to file a tax return. U.S. District Judge Catherine C. Blake has scheduled sentencing for March 29, 2019, at 9:15 a.m.