Gladys Rossi, Tax Evasion, Rhode Island 2021

Tax Evasion Lands Former Business Owner Two Years Probation

PROVIDENCE, R.I. – In a move to hold individuals accountable for their financial crimes, the former owner of a Providence-based business, Gladys Rossi, was sentenced to two years federal probation and ordered to pay the Internal Revenue Service more than $550,000 in back taxes and interest for failing to report more than $1.2 million in business revenue, announced United States Attorney Zachary A. Cunha.

Gladys Rossi, sole owner and operator of the now defunct R.I.J. Inc, pleaded guilty on October 6, 2021 to two counts of filing false tax returns.

According to charging documents, an investigation by Internal Revenue Service Criminal Investigation determined that from 2012 through 2015, Ms. Rossi routinely cashed checks issued to her business by clients, but failed to report the income to the IRS. Ms. Rossi paid employees under-the-table and failed to maintain or prepare business records that accurately tracked expenditures, gross income, net income, profits, and dividend disbursements.

Ms. Rossi failed to report income totaling $1,226,707.21, resulting in an underpayment of taxes of at least $407,767. Accrued interest on the amount of taxes due the IRS totals $147,848.45. As part of the sentence, Ms. Rossi was ordered to pay restitution in the amount of $555,615.45, which is made up of the underpayment sum with interest added.

The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.

Gladys Rossi’s actions highlight the consequences of ignoring tax laws. Tax evasion not only affects the individual but also the community as a whole. It is essential for individuals and businesses to report their income accurately and comply with tax regulations.

The U.S. Attorney’s Office will continue to work to ensure that individuals and businesses are held accountable for their financial crimes.

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