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New Jersey Construction Company Owner Sentenced for Tax Evasion
A New Jersey construction company owner has been taken to task for his role in evading employment tax penalties. Joseph Caravella, of Randolph, New Jersey, was sentenced to 15 months in prison for attempting to evade the payment of Trust Fund Recovery penalties.
According to court documents and statements made in court, Caravella owned several masonry companies in New Jersey, including three that were assessed approximately $650,000 in Trust Fund Recovery penalties for failing to pay their federal employment taxes between 2008 and 2016.
The timely payment of federal employment taxes is critical to the functioning of the U.S. government, as they are the primary source of funding for Social Security and Medicare. Federal income taxes withheld from employees’ wages also account for a significant portion of all federal income taxes collected each year.
Caravella pleaded guilty to attempting to evade these Trust Fund Recovery penalties, which were assessed by the Internal Revenue Service (IRS) for the period from March 2008 through April 2019. During this time, he sought to evade the payment of these penalties by placing companies that he controlled in the names of nominee owners and avoiding the use of a bank account in his own name to prevent the IRS from levying the funds.
Caravella’s actions resulted in an additional loss of $1.2 million to the IRS, bringing the total tax loss to $1,885,519.39. Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Alina Habba for the District of New Jersey made the announcement, with IRS Criminal Investigation investigating the case.
Trial Attorney Hayter L. Whitman of the Tax Division and Assistant U.S. Attorney Christopher Fell for the District of New Jersey are prosecuting the case.
Caravella’s sentence is a reminder that tax evasion will not be tolerated, and those who attempt to evade the payment of employment taxes will face the consequences. The public can report suspected tax evasion to the IRS by calling 1-800-829-0433.
Key Facts
- State: New Jersey
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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