Related Federal Cases
- Tax Evasion Lands Beach House Owner in Hot Water · Rhode Island
- Tax Cheat Sentenced to 27 Months in Prison · Rhode Island
- Boca Raton Attorney Pleads Guilty to Tax Evasion · Rhode Island
- Identity Thief Pleads Guilty in $7.5 Mil Tax Scam · Alabama
- Tax Preparer Sentenced for Identity Theft · Rhode Island
Tax Cheat Bites: Scialo Pleads Guilty to Attempted Tax Evasion
A Rhode Island businessman has pleaded guilty to attempting to evade the payment of more than $180,000 in federal taxes, according to a plea deal reached in federal court in Providence. Richard Scialo, 58, owner and operator of Personal Touch, a Providence-based home and business cleaning service, admitted to underreporting taxable income he claimed was cash ‘gifts’ from some of his clients for whom he provided cleaning services.
Despite being warned during a routine IRS audit in 2008 that all income generated by his business was taxable, including cash ‘gifts’ provided by clients for services rendered by his company, Scialo failed to accurately report income generated by his business through tax year 2009. A further investigation by IRS agents revealed that Scialo failed to accurately report his business’ taxable income for tax years 2004 – 2009, and that he failed to pay $181,417 in federal taxes.
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. Scialo 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; 3 years supervised release; and, a fine of $250,000. According to a plea agreement filed in this matter, Scialo has agreed to pay restitution to the IRS in the amount of $181,417.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams. The matter was investigated by Internal Revenue Service, Criminal Investigation.
Scialo’s business, Personal Touch, has been operating in Providence since at least 2004, providing home and business cleaning services to clients in the area. The investigation into Scialo’s activities was prompted by a routine IRS audit in 2008, which revealed discrepancies in his company’s financial records.
Scialo’s guilty plea marks a significant victory for federal prosecutors in their efforts to combat tax evasion in Rhode Island. The case serves as a reminder to businesses and individuals alike of the importance of accurately reporting income and paying taxes owed to the government.
Key Facts
- State: Rhode Island
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
