Business owners will do what they can to limit their tax liability. In doing so, some may make mistakes that could cost them dearly in the end. Recently, the owner of Pasquale Furano Landscaping -- a 48-year-old male -- recently opted to enter a guilty plea rather than be indicted for tax evasion.
According to a recent report in the Connecticut Post, this individual is accused of under-reporting receipts on his federal 2009 to 2013 tax returns. The amount he is said to have failed to report is roughly $2.5 million. This means that, over a five-year period, he ended up paying just over $44,000 in taxes rather than the $580,000-plus that he actually owed.
A search of this individual's home turned up over $613,000 in cash. He was reportedly cashing client checks rather than depositing them into his company account. In pleading guilty, this individual has agreed to pay the IRS nearly $500,000 in fees and penalties. He also will have to pay the state of Connecticut over $112,000 in sales tax. The money seized from his home will be used to cover his outstanding tax debt.
Along with paying all the fines, penalties and tax debt, this individual may face imprisonment of up to five years. This is the maximum term allowed for this type of crime. Sentencing in this case is set for June 8.
Tax evasion is not something taken lightly by the federal government or the state of Connecticut. Those accused of purposely altering tax records and failing to pay the appropriate amount in taxes could face significant consequences -- just like this gentleman. Before things get this far, however, a tax attorney may be able to help turn things around for business owners with tax issues.
Source: Connecticut Post, "DOJ: Greenwich man pleads guilty to tax evasion", Tara O'neill, March 15, 2018