In his first comment after pleading guilty to failing to file federal income tax returns, Omaha City Councilman Vinny Palermo on Tuesday described it as "an administrative matter" and said he won't resign from office.
Palermo, 46, entered guilty pleas Monday for willful failure to file income tax returns for 2012, 2013 and 2014, the U.S. Attorney’s Office in Omaha announced.
He admitted in court that he failed to file the returns within the time required, which is a misdemeanor under federal law.
"Absolutely, I will not resign," Palermo said Tuesday before declining to answer further questions.
On Monday, he referred questions to his lawyer, James Martin Davis, who said Palermo has fixed the mistakes and paid what he owed. He noted that Palermo filed the income tax returns more than two years ago.
Court documents show that Palermo owed taxes on income from his tree-trimming business, Vinny’s Tree Service. Prosecutors say he willfully failed to file tax returns after receiving gross income of $145,434 in 2012, $220,400 in 2013 and $129,612 in 2014, according to court documents.
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Palermo agreed to pay restitution for $21,209 in taxes owed and take responsibility for the mistake, according to the plea agreement.
“I failed to file my tax returns several years ago in a timely manner,” Palermo wrote in his petition for a plea agreement. “They have now been filed.”
Davis said it’s not uncommon for new business owners to have trouble with how to handle tax withholding and quarterly tax payments.
As part of Palermo’s plea agreement, federal prosecutors agreed not to seek additional charges based on whether Palermo filed returns for 2015 and 2016. Davis said he had no indication that those returns were late.
Palermo could spend up to a year in federal prison on each of the three counts, along with fines of up to $100,000, as well as a year of supervised release. Davis said he doesn’t expect Palermo to receive prison time.
“Mr. Palermo should have been more aware of his own financial obligations,” said Karl Stiften, the special agent in charge of the IRS investigation. “This wasn’t an oversight or mistake.”
City Attorney Paul Kratz declined to comment on whether the charges might affect Palermo’s ability to serve on the City Council. Davis said they would not.
Mayor Jean Stothert, reached through a spokeswoman, and Council President Chris Jerram declined to comment on the case.
Palermo, who was elected to the council in 2017, previously served on the Omaha Public Schools board.
He won a three-way primary for his South Omaha council seat, beating Jim Rogers by 45 votes. He is a Democrat on the officially nonpartisan council. The Douglas County Republican Party on Monday called on Palermo to resign.
In his council role, Palermo has sided often with organized labor and city employees and butted heads with Public Works, where he once worked.
He has also sometimes backed Stothert, including on the recent vote to award the city’s next trash contract to FCC Environmental.
Palermo’s sentencing is scheduled for Dec. 9.
World-Herald staff writers Christopher Burbach and Todd Cooper contributed to this report.
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Detroit Tigers' Miguel Cabrera signed autographs for fans prior to a Major League Baseball game against the Kansas City Royals at TD Ameritrade Park in Omaha, Nebraska, on Thursday, June 13, 2019.
Omaha Burke's Jaylon Roussell jogged the field people to participating in the Nebraska Cornhuskers Friday Night Lights event at Memorial Stadium in Lincoln, Nebraska.
Louisville's Adam Elliott warmed up before the start of game 7 of the College World Series.
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Michigan's Jordan Brewer and Jack Blomgren celebrated after defeating Vanderbilt in their College World Series game.
A B-2 stealth bomber flew over as Michigan stands during the National Anthem before their College World Series game.
Vanderbilt faces Michigan during their College World Series game.
Vanderbilt's Harrison Ray signed autographs before the start of game 3 of the CWS championship.
Vanderbilt fans celebrate at the Commodores capture a national title with a win over Michigan.
Michigan players mingled prior to their College World Series game against Vanderbilt.
Vanderbilt celebrated their win over Michigan during the third game of the champion series of the College World Series.
Chris Isaak performed at the free Memorial Park Concert at Memorial Park.
Omaha firefighter David Kirchofer provided water to Louie the dog, after Kirchofer helped battle a a fire at 5427 86th Court. Louie, who does not live in the unit that caught fire, was interested in all the action.
Ray Renk of San Francisco, California, holds his daughter Kennedy, 8, alongside his son Benjamin, 10, while sporting personalized suits and watching Warren Buffett, the CEO of Berkshire Hathaway, walk the convention floor during the Berkshire Hathaway Annual Shareholders Meeting at the CHI Health Center Omaha in Omaha, Nebraska, Saturday, May 4, 2019.
Phoebe the giraffe eats lettuce fed by visitors as the Lincoln Children's Zoo provides a sneak peek at their new exhibits and expansion in Lincoln, Nebraska, Thursday, May 9, 2019.
Lincoln Southeast’s Katie Whitehead, center, and Caroline Miller, right, celebrate with teammates including Ally Keitges, left, after winning the No. 1 doubles against Millard North during the NSAA Class A girls state tennis championship match at Koch Family Tennis Center in Omaha, Nebraska, Friday, May 17, 2019.
Omaha Bryanâ€™s Darwin Loftin lands a long jump during the Metro Conference track meet at Omaha Burke.
Millard West's Corbin Hawkins waits out the rain delay in the dugout. The baseball game between Millard West and Creighton Prep was postponed because of the weather.
Archbishop Bergan's Luke Jessen hits the center field wall trying to catch a hit from Millard West's Max Anderson resulting in an in-field home run during their state tournament game.
Crawford's Jillian Brennan (13) points up to the sky before the Class D 3,200-meter final at Omaha Burke High School during day one of the state track meet.
Gretna's Ashley Marsh connects with the ball alongside Marian's Maureen Tolley during the semifinal round of the Class A girls state soccer tournament at Morrison Stadium in Omaha, Nebraska, Saturday, May 11, 2019.
Elkhorn South players celebrate their championship while reading the name plate on the trophy after defeating Skutt during the NSAA Class B girls state soccer championship game Morrison Stadium in Omaha, Nebraska, Tuesday, May 14, 2019.
Jacob Himelick, left, a Millard north senior, chats with fellow senior Jace January as he signs January's year book. January likes to spend the time between classes greeting fellow students in the hallway.
Hannah Gruhlkey hugs her goat Griffin as he nibbles on her hair during a Country Bumpkin 4-H Club meeting at the Living Legend Farm.
Chipper Fyfe stands on a dike to see how far floodwaters have risen just west of Hamburg, Iowa.
Nebraska pitchers stay loose before their NCAA Regional game in Oklahoma City.
Tad Badje, 49, right, and wife Shelly Badje, 48, pepper Title Boxing Club's general manager, Chris Gerhardt's mid-section during a two-on-one body shot race as part of their work out at Title Boxing Club in Omaha, Nebraska.
Two-year-old Hannah Bonnot of Denver, Colorado, stands in awe before "Mountain Outlaw" taken at Grand Teton National Park, Wyoming, on display at Tom Mangelsen's "Life in the Wild" exhibition at the Durham Museum in Omaha, Nebraska.
A deer walks through the tall grass at Chalco Hills Recreation Area in Omaha, Nebraska.
Canada geese fly over Flanagan Lake at sunset in Omaha, Nebraska.
The sunset is reflected in some open water at Flanagan Lake in Omaha, Nebraska.
Ian Murphy, canvases the nearly 90 snow people which are on display at the Leavenworth Park in Omaha, Nebraska. Neighbors such as Murphy say the snow people didn't exist yesterday and claim it happened over night or possibly early this morning.
Husker fans rock The Rock and corn hats in the first half as the University of Nebraska-Lincoln men's basketball team hosts Michigan State at the Pinnacle Bank Arena in Lincoln, Nebraska.
An allosaurus appears to be eyeing a tasty, 19-month-old morsel named Austin Haseltine as he is lifted from the shoulders of his grandpa, Greg Fasano, by his mother, Amy Haseltine, with his father, Jim Haseltine looking on. The Dinosaur UpROAR exhibit at Lauritzen Gardens, 100 Bancroft Street in Omaha, Nebraska, features 20 life-sized installations as well as discovery stations and educational activities set throughout the gardens.
The setting moon is framed by some dried flowers at Lake Zorinsky in Omaha, Nebraska.
A person goes for a run along the snow covered trails at Lake Zorinsky in Omaha, Nebraska.
The sun rises on a snow covered Lake Zorinsky in Omaha, Nebraska.
Pink and blue balloons float past the Sower statue on the Nebraska State Capitol after balloons were released for the 45th annual Nebraska Walk for Life in Lincoln, Nebraska.
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Heavy machinery stacks up concrete chunks on the shore of the Elkhorn River at the Q Street bridge as part of an effort to stabilize the bank on the recently flooded river.
Sarpy County Sheriff's Deputy Darin Morrissey rides an ATV through floodwaters in Hawaiian Village.
Omaha Roncalli's Shane Orr celebrates their double overtime win over Aurora during a semifinal game in the Class B Nebraska state basketball tournament at Pinnacle Bank Arena.
The Auburn bench and crowd react to Auburn's Cameron Binder hitting what would be the game winning shot against North Bend Central during the championship game in the Class C1 Nebraska state basketball tournament at Pinnacle Bank Arena.
Nebraskaâ€™s Adrian Martinez runs out of the end zone after a play during spring football practice at the Hawks Championship Center in Lincoln, Nebraska.
Treyton Gubser, left, and his uncle Daniel Gubser paddle using shovels through the floodwaters after they rescued Daniel's kid's cat, Bob, in Hamburg, Iowa.
Highway 81 is covered in floodwaters south of Columbus, Nebraska.
A Nebraska National Guard helicopter flies over a flooded Waterloo, Nebraska, in March.
Cars drive drive across a flooded Platte River on Highway 50 just north of Louisville, Nebraska.
A Canada goose flies over Matthew J. Placzek's "Monument to Labor" sculpture as floodwaters from the Missouri River begin to recede on the Omaha riverfront.
Floodwaters closed Ave I at North 26th Street in Council Bluffs, Iowa.
A truck drives through a flooded road near the Platte River in April.
Lincoln Pius X's Austin Jablonski holds up the net after his team defeated Omaha Roncalli in the championship game in the Class B Nebraska state basketball tournament at Pinnacle Bank Arena.
Amelia Fritz, right, holds on to her daughter-in-law Tesha Fritz in Glenwood, Iowa. They were evacuated from Pacific Junction, Iowa, after floodwaters hit the town last night. They were part of 15-relatives all staying in the same house or in a camper in the front driveway.
Robert Jones looks around his flood damaged house north of Highway 50, near Louisville,Nebraska. The floor, which is normally a white tile, is covered in mud.
Aurora's Nicholas Hutsell, left, fouls Omaha Roncalli's Alexander Rodgers during a semifinal game in the Class B Nebraska state basketball tournament at Pinnacle Bank Arena.
Lincoln Pius X's Charlie Easley, left, and and Omaha Roncalli's Alexander Rodgers stretch for a loose ball during the championship game in the Class B Nebraska state basketball tournament at Pinnacle Bank Arena.
Humphrey/Lindsay Holy Family's Trent Reardon, left and Jason Sjuts celebrate their victory over Fremont Bergan during the championship game in the Class D1 Nebraska state basketball tournament at Pinnacle Bank Arena.
Aurora's Kaleb Moural wipes the sweat from his face during the second half against Omaha Roncalli during a semifinal game in the Class B Nebraska state basketball tournament at Pinnacle Bank Arena.
Bob the cat looks on from a basket in a boat after being rescued from floodwaters in Hamburg, Iowa.
A vehicle is stuck in floodwaters near 1st Street and Pierce Street in Fremont, Nebraska.
Tim Rockford, left, and David Bauer, tour the Bellwood Lakes neighborhood which was destroyed by the flooding days prior along the Platte River in Bellwood, Nebraska.
Lincoln East's Charlotte Bovaird practices her shot and she and her teammates warm up in the hallways before the start of the game. Lincoln East played Millard South in a Class A first-round basketball game during the girls state basketball tournament at the Pinnacle Bank Arena in Lincoln, Nebraska.
Westside poses with the championship plaque with the winning score on the wall behind them after Omaha Westside defeated Millard North 54-53 at Omaha Westside in Omaha, Nebraska.
Chris Saenz of Bellevue works out at FIT IN THE CITY in Papillion, Nebraska.