DANBURY, Conn. -- Two Danbury brothers pleaded guilty to federal tax evasion charges connected to their flooring business, according to U.S. Attorney Deirdre M. Daly, U.S. Attorney.
David Benincasa, 34, and Scott Benincasa, 32, both of Danbury, waived their right to indictment and pleaded guilty Wednesday in Hartford federal court to federal tax offenses.
According to court documents and statements made in court, David Benincasa and his brother, Scott Benincasa, were 50 percent owners in Goodhouse Flooring, a business that provides floor installation and flooring products to retail and commercial customers.
David Benincasa assisted Scott Benincasa with the daily operations of the business, but had primary responsibility for the financial aspects of the business. For the 2008-10 tax years, the brothers intentionally understated gross receipts from their business on the Schedule C attached to their respective federal personal income tax filings, authorities said.
During those years, the brothers failed to accurately report the expenses incurred in running their business, as they paid certain laborers who worked for their business in cash and then failed to reflect the cash payments on their filed returns, authorities said.
The additional tax due and owing attributable to the Benincasas' criminal conduct is $238,274 and $47,076, respectively, authorities said.
In pleading guilty, Scott Benincasa also admitted that, during an IRS civil audit, he submitted a false real estate log and business schedule in an effort to improperly justify previously taken deductions on his 2009 federal personal income tax return.
David Benincasa pleaded guilty to one count of tax evasion, which carries a maximum prison term of five years. He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on Jan. 25.
Scott Benincasa pleaded guilty to one count of filing a false tax return, which carries a maximum prison term of three years. He is scheduled to be sentenced by Chatigny on Jan. 21.
Both defendants also will be ordered to pay full restitution, plus applicable interest and penalties.
The announcement was also made by William P. Offord, special agent in charge of IRS Criminal Investigation in New England.
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