Danbury Flooring Mogul Sentenced for Tax Scam

A Danbury business owner was sentenced to three years of probation for filing false tax returns, according to federal authorities. Scott Benincasa, 32, was also ordered to perform 120 hours of community service, pay a $15,000 fine and make full restitution to the IRS.

Benincasa, who co-owned Goodhouse Flooring, LLC with his brother, David, intentionally understated the company’s gross receipts and failed to accurately report expenses on their tax filings for the 2008 through 2010 tax years. The brothers also paid certain laborers in cash, which they failed to reflect on their filed returns.

During an IRS civil audit, Benincasa submitted a false real estate log and business schedule in an effort to improperly justify previously taken deductions on his 2009 federal personal income tax return. He was ordered to pay $47,076 in back taxes, plus applicable interest and penalties.

Benincasa pleaded guilty to one count of filing a false tax return on October 28, 2015. His brother, David Benincasa, 35, also pleaded guilty to one count of tax evasion and faces a maximum term of imprisonment of five years when he is sentenced on January 25. He has agreed to pay $238,274 in back taxes, plus applicable interest and penalties.

The investigation was led by the Internal Revenue Service – Criminal Investigation Division and is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.

The case serves as a reminder of the importance of accurately reporting financial information to the IRS. It also highlights the consequences of filing false tax returns and the need for business owners to maintain accurate and transparent financial records.

Benincasa’s sentence is a significant blow to the company, which provided floor installation and flooring products to retail and commercial customers in the Danbury area.