Danbury Flooring Company Owner Sentenced to Prison for Tax Evasion

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID BENINCASA, 35, of Danbury, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to three months of imprisonment, followed by two years of supervised release during which BENINCASA must spend six months in home confinement, for tax evasion.  Judge Chatigny also ordered BENINCASA to pay a $15,000 fine and perform 120 hours of community service.

According to court documents and statements made in court, DAVID BENINCASA and his brother, Scott Benincasa, were 50 percent owners in Goodhouse Flooring, LLC, 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 through 2010 tax years, the brothers intentionally understated gross receipts from their business on the Schedule C attached to their respective federal personal income tax filings.  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.

Prior to sentencing, DAVID BENINCASA paid $238,274 in back taxes, plus applicable interest and penalties.

On October 28, 2015, DAVID BENINCASA pleaded guilty to one count of tax evasion and Scott Benincasa, 32, of Danbury, pleaded guilty to one count of filing false tax returns.

On January 21, 2016, Scott Benincasa was sentenced to three years of probation, six months of home confinement and 120 hours of community service.  He also was ordered to pay a $15,000 fine and $47,076 in back taxes, plus applicable interest and penalties.

This matter was investigated by the Internal Revenue Service – Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.