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Thursday, November 7, 2024

New Jersey business owner admits guilt in significant tax evasion case

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Lisa O. Monaco Deputy Attorney General | Official Website

A New Jersey man has admitted guilt in a tax evasion case related to employment tax penalties. Joseph Caravella, from Randolph, owned multiple masonry companies in the state. According to court documents and statements made in court, between 2008 and 2016, the IRS imposed approximately $650,000 in Trust Fund Recovery penalties on Caravella. This was due to his failure to ensure that three of his businesses paid their federal employment taxes.

From March 2008 until around April 2019, Caravella attempted to avoid paying these penalties by registering companies under nominee owners' names and not using a bank account under his own name. This strategy aimed to prevent the IRS from accessing funds through levies. During this period, he also continued not paying employment taxes for his businesses, leading to an additional loss of $1.2 million for the IRS.

Overall, Caravella caused a total tax loss of $1,885,519.39 to the IRS.

His sentencing is set for March 18. He could face up to five years in prison along with supervised release, restitution obligations, and monetary fines. The sentence will be determined by a federal judge after considering U.S. Sentencing Guidelines and other statutory factors.

The announcement was made by Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Philip R. Sellinger for the District of New Jersey.

The investigation is being conducted by IRS Criminal Investigation.

Trial Attorneys Kenneth Vert and Evan Mulbry from the Tax Division along with Assistant U.S. Attorney Shontae Gray for the District of New Jersey are handling prosecution duties.

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