Michael Fitzgibbons, a Wayzata marketing executive, was convicted this month of dodging a half-million bucks in Minnesota taxes on millions of income over several years. Fitzgibbons, 53, was a star at Eagan-based North American Communications Resources, a communications firm.
He was found guilty of 10 felony counts involving failure to file income tax returns between 2003 and 2007, as his income from salary, bonuses and investments regularly topped $2 million.
Hennepin County Attorney Mike Freeman pointed to the conviction as a victory for taxpayers. Fitzgibbons also becomes the poster child for state and federal revenuers, as we near the April 15 filing deadline.
Fitzgibbons' defense? He contended that he believed the amount withheld from wages covered his state and federal tax liability. So he didn't file a return.
"This is a tragic story," said Peter Wold, attorney for Fitzgibbons. "This guy is utterly unsophisticated. I mean, he carried around a $1 million bonus check in his briefcase for four weeks before somebody said he should deposit it. He paid $2.6 million over those years in federal and state withholding. There was nothing that Michael Fitzgibbons did that was not in good faith."
Prosecutors alleged that Fitzgibbons rushed to file returns once he learned he was being investigated by the IRS and Minnesota revenue agents.
But Wold, who said this case never should have become a criminal matter, said: "He has paid his taxes to the feds and the state [and] his accountant is negotiating interest and penalties. Minnesota will end up ahead."
Veteran white-collar prosecutor Tom Fabel said Fitzgibbons ignored letters from the tax man and that he is a sophisticated conniver. He will be sentenced May 2 by Hennepin County District Judge Marilyn Rosenbaum.