PROVIDENCE, R.I. – In a stunning turn of events, Richard Scialo, 58, owner and operator of Personal Touch, a Providence-based home and business cleaning service, has pleaded guilty to attempting to evade the payment of more than $180,000 in federal taxes.
According to court documents, Scialo claimed that cash ‘gifts’ from clients were not taxable income, despite being warned by the IRS in 2008 that all income generated by his business was subject to taxation. An investigation by IRS agents revealed that Scialo failed to accurately report his business’ taxable income for tax years 2004-2009, resulting in a total tax debt of $181,417.
Scialo’s guilty plea to one count of attempted tax evasion was announced by United States Attorney Peter F. Neronha and William P. Offord, Special Agent in Charge of the Boston office of the Internal Revenue Service, Criminal Investigation.
Under the terms of his plea agreement, Scialo has agreed to pay restitution to the IRS in the amount of $181,417. He is scheduled to be sentenced by U.S. District Court Chief Judge Mary M. Lisi on July 19, 2013.
Attempted tax evasion is punishable by up to five years in federal prison, three years of supervised release, and a fine of $250,000.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
The matter was investigated by Internal Revenue Service, Criminal Investigation. Those with information on this case are encouraged to contact the U.S. Attorney’s Office at 401-709-5357 or USARI.Media@usdoj.gov.
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Key Facts
- State: Rhode Island
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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