A New York man has been sentenced to 20 months in prison for conspiring to defraud the United States by concealing income from the Internal Revenue Service (IRS). Aniello Strocchia, the owner and operator of an auto repair shop in Maspeth, was found guilty of evading nearly $1 million in taxes over a five-year period.
According to court documents and statements made during the proceedings, Strocchia engaged in a scheme from 2013 to 2017 in which he cashed more than $1.3 million in checks made out to his auto repair shop at commercial check-cashing businesses. Instead of depositing these funds into the shop’s bank account, Strocchia concealed this income from his tax return preparers. As a result, the tax returns filed for both his business and personal accounts significantly underreported the shop’s gross receipts, ordinary business income, and his total personal income.
In addition to underreporting his income, Strocchia failed to pay the full amount of taxes he reported as due on his personal returns. Instead of fulfilling his tax obligations, he used the concealed income to fund a lavish lifestyle, which included purchasing a luxury car collection, acquiring a second home, and spending approximately $500,000 on extensive home renovations.
The total tax loss to the IRS as a result of Strocchia’s actions amounted to $989,976.
In addition to the 20-month prison sentence, U.S. District Judge Hector Gonzalez for the Eastern District of New York ordered Strocchia to serve two years of supervised release following his prison term. Strocchia was also ordered to pay $989,976 in restitution to the United States.
The announcement of Strocchia’s sentencing was made by Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Breon Peace for the Eastern District of New York. The case was investigated by IRS Criminal Investigation, and Trial Attorney Matthew Cofer of the Tax Division prosecuted the case.
This article, “New York Auto Repair Shop Owner Sentenced to 20 Months for Tax Fraud Conspiracy” was first published on Small Business Trends