Mike reportedly failed to properly declare his earnings and was charged with tax evasion in New Jersey.
According to the U.S. Attorney, Mike did not pay the full amount of taxes on his $8.9 million in earnings. Moreover, he filed fraudulent returns with the IRS relating to his businesses Situation Nation and MPS to make it appear as though his tax bill was up-to-date.
He allegedly got paid in cash hundreds of thousands of dollars for personal appearances and failed to declare the income. He also omitted the entire $1.95 million earned in 2010. The brothers reportedly hired accountants, then failed to tell the accountants their true income.
Mike is facing 11 years in prison for his alleged crimes and fines of $600,000.
“According to the indictment, Michael and Marc Sorrentino filed false tax returns that incorrectly reported millions made from promotions and appearances,” U.S. Attorney Paul J. Fishman told New York City’s WABC. Adding, “The brothers allegedly also claimed costly clothes and cars as business expenses and funneled company money into personal accounts. The law is absolutely clear: telling the truth to the IRS is not optional.”
He seems to be dismissing the charges as a youthful mistake, writing on Twitter “to be old and wise you must first be young and dumb.”
Mike and his brother surrendered to authorities today, were booked, and appeared in court. They have since been released on a $250,000 bond. They plan to plead “not guilty” and they will be arraigned October 6.
“The charges are fiction,” says Marc’s attorney, Christopher Adams. “And it’s unfortunate that the government is relying on the word of a disgraced accountant who is a proven liar.”
“This is not a surprise,” adds Adams. “We have been showing the government for the better part of a year now the flaws in their theory and now we’ll have to show the same to court.”