Fox News host Emily Compagno’s husband, Peter Riley, is facing major money problems. A federal judge in New Jersey has ordered Mr. Riley to pay a substantial sum of $704,000 in back taxes, along with an additional $1,080,000 as a penalty.
This legal action follows a prolonged period of non-response to authorities regarding an initial unpaid income tax bill of $368,000 spanning the tax years 2016 to 2022.
The Eastern District of Pennsylvania ultimately ruled in favor of the government due to Mr. Riley’s failure to engage with the Department of Justice (DOJ) or appear in court.
Who is Emily Compagno’s Husband?
- Full Name: Peter Joseph Riley
- Net Worth: $500,000
- Annual Income: $110,000
- Occupation: Real Estate Broker
- Date of Birth: 26 December 1978
- Height: 6′ 0″ (185 cm)
- Ethnicity: Irish-American
Potential legal options
- Filing a motion to set aside the default judgment under Rule 60(b), requiring a valid reason for non-response.
- Negotiating with the IRS for an installment agreement or Offer in Compromise, given reported financial distress.
- Considering Chapter 7 or Chapter 13 bankruptcy, though 2022 tax debt and potential fraud penalties may not be dischargeable.
Federal Tax Penalties for Peter Riley
| Penalty Type & Trigger | Penalty Rate |
|---|---|
| Failure to Pay — Not paying taxes on time | 0.5% per month (up to 25%) |
| Failure to File — Not filing taxes on time | 5% per month (up to 25%) |
| Civil Fraud — Underpayment of tax with fraudulent intent | 75% of the underpayment due to fraud |
Emily Compagno’s husband Peter Riley ignored DOJ inquiries for over a year regarding the $368,000 tax bill, escalating the debt with penalties and interest.
As the spouse of a public figure, Riley’s tax issues, widely reported in the media, may harm his and Emily Compagno’s public image, potentially affecting professional opportunities.
Lawyer’s Advice
Under Rule 60(b), Riley could file a motion to vacate the judgment, but he must demonstrate a valid reason for his non-response (e.g., improper service or excusable neglect). Ignoring notices is unlikely to qualify, and the motion must be filed within a reasonable time, typically within one year.
Given reported financial distress and near-bankruptcy, Riley may qualify for an OIC to settle the debt for less than owed, if he proves inability to pay the full amount.
Bankruptcy Considerations:
- Chapter 7: May discharge 2016 and 2017 tax debts if they are over three years old, filed two years before bankruptcy, assessed 240 days prior, and not fraudulent. The 2022 debt and potential fraud penalties are likely non-dischargeable.
- Chapter 13: Allows a 3–5-year repayment plan for non-dischargeable debts, including recent tax debts, suitable for managing Riley’s obligations if he has regular income.
- Eligibility: Peter Riley must have filed all required tax returns for the past four years and remain current on taxes during bankruptcy proceedings. He can also use his wife Emily Compagno as a guarantor.
Peter Riley should pursue an installment agreement, OIC, or CNC status to manage the debt, leveraging reported financial hardship.
He must also assess Chapter 7 for potential discharge of older tax debts or Chapter 13 for a structured repayment plan, ensuring compliance with filing requirements.
Moving forward, Riley must prioritize timely tax filings and payments, using professional assistance to avoid further issues.