Donald Biagi Jr., Tax Evasion, Connecticut 2017

Connecticut – A Fairfield County landscaper has been sentenced to 18 months in prison for tax evasion, the U.S. Attorney’s office announced today.

Donald Biagi, Jr., 55, of Fairfield, was sentenced by Senior U.S. District Judge Alfred V. Covello in Hartford to 18 months of imprisonment, followed by one year of supervised release, for tax evasion.

According to court documents and statements made in court, Biagi is the sole owner of Don Biagi Landscaping. The company generated business income by providing landscaping and snowplowing services to commercial and residential customers in Fairfield County.

Between 2008 and 2010, Biagi cashed approximately 574 client checks, ranging in amounts from $10.52 to $15,604.50, in the total amount of approximately $848,750. The checks were negotiated at banks for cash rather than deposited into his business bank accounts.

Biagi, who acted as his own bookkeeper, did not disclose to his tax return preparer the client checks he cashed and some of the client checks he deposited into his business account between 2008 and 2010. As a result, a total of $1,321,305 in business gross receipts were not reported on Biagi’s federal tax returns for 2008, 2009, and 2010, resulting in his substantially under-reporting his taxable income.

Biagi failed to report approximately 62 percent of his business’s gross receipts in 2008, approximately 47 percent of the gross receipts in 2009, and approximately 60 percent of the gross receipts in 2010. Judge Covello ordered Biagi to pay $445,579 in back taxes, and additional penalties and interest that have accrued on his unpaid taxes.

On September 29, 2016, Biagi pleaded guilty to one count of tax evasion. He was ordered to report to prison on April 1, 2017. The Internal Revenue Service, Criminal Investigation Division, investigated the case, and was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.

Biagi made a $50,000 payment toward his restitution today. The case is a stark reminder of the consequences of tax evasion and the importance of accurately reporting business income on tax returns.

The U.S. Attorney’s Office praised the work of the Internal Revenue Service, Criminal Investigation Division, for its role in investigating the case.

The case highlights the need for business owners to maintain accurate financial records and to report their income truthfully on tax returns.

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