The vice president of the Omaha City Council plans to remain in office, and seek re-election, while on probation for failing to file a tax return over three years.

U.S. District Judge Brian C. Buescher sentenced Vincent J. Palermo to four years of federal probation last Wednesday for three counts of willful failure to file income tax returns for the 2012 through 2014 tax years.

Palermo was ordered to pay a $35,000 fine along with $21,209 in restitution, according to a news release from District of Nebraska U.S. Attorney Joe Kelly. Palermo was also ordered to complete 120 hours of community service.

Palermo, 46, admitted in court to not filing an IRS Form 1040 despite receiving gross income of $145,434 in 2012, $220,400 in 2013 and $129,612 in 2014.

“Mr. Palermo admitted in a courtroom to willfully violating the tax laws,” said Karl Stiften, special agent in charge of IRS criminal investigation. “As we approach filing season, it is important for people to have confidence that when they pay their taxes, their neighbors and co-workers are doing the same.”

Palermo told The Daily Record he does not plan to step down from the Omaha City Council nor resign as its vice president.

His lawyer, James Martin Davis, has said Palermo has paid what he owed and did file the returns more than two years ago.

Mayor Jean Stothert said in a statement that the City Charter allows the full council the authority to remove members from office for reasons outlined in the charter. Those include conviction of a felony or any crime involving a violation of the official oath.

“The residents of City Council District 4 deserve the best and most focused representation possible,” Stothert said. “The final legal step in this process now concluded, Councilman Palermo will now have that opportunity as long as he is on the Council.”

Palermo is a Democrat on the officially nonpartisan council. The Douglas County Republican Party has called on him to resign.

He was elected in 2017 to represent the District 4, which covers South Omaha, where Palermo was born and raised. He is a graduate of Omaha South High School and served as an operations specialist in the U.S. Navy before attending the University of Nebraska at Omaha and becoming a small business operator and entrepreneur. Prior to serving on the council, he was a member of the Omaha school board.

Palermo’s colleagues on the City Council have made no public moves to oust him. As vice president, Palermo would serve as the city’s acting mayor in the absence or disability of both Stothert and Council President Chris Jerram.

This report contains material from The Associated Press.