Mount Kisco Maintenance And Construction Company Owner Charged In Manhattan Federal Court With Failing To Pay Payroll Taxes And Obstructing The IRS
Preet Bharara, the United States Attorney for the Southern District of New York, Richard Weber, the Chief of the Criminal Investigation, Internal Revenue Service (“IRS”), and Kathy Keneally, the Assistant Attorney General for the Tax Division of the U.S. Department of Justice, announced today the filing of an Indictment charging THOMAS NASTASI III, 45, of Mt. Kisco, New York, with three counts of willful failure to pay the IRS payroll taxes collected from the employees of his company, Nastasi Maintenance & Construction, and one count of impeding and impairing the lawful functioning of the IRS.
Manhattan U.S. Attorney Preet Bharara stated: “Thomas Nastasi’s employees had no way of knowing that the payroll taxes he withheld from their paychecks were allegedly underwriting his lavish lifestyle instead of being turned over to the IRS. Nastasi allegedly used his companies as vehicles through which he could cheat the IRS out of millions of dollars in revenue, and he now faces serious charges and potential penalties.”
IRS Criminal Investigation Chief Richard Weber stated: “Business owners have a responsibility to withhold income taxes for their employees and then remit those taxes to the Internal Revenue Service. In addition, individuals cannot use their companies as personal piggy banks. These crimes cause personal harm to employees of the company and rob the U.S. Treasury of tax dollars.”
The following allegations are based on the Indictment filed in Manhattan federal court:
From 2001 through 2011, THOMAS NASTASI III owned and operated a series of construction and maintenance companies, including Nastasi Maintenance & Construction. As the President of the companies, NASTASI was responsible for withholding payroll taxes from his employees and paying them to the IRS. Those taxes included the employees’ income taxes, Social Security, and Medicare taxes. NASTASI accumulated well over $1 million but never paid them to the IRS. Nor did NASTASI pay the IRS the employer’s portion of Social Security and Medicare taxes for his employees
The Indictment also charges NASTASI with corruptly attempting to impede and impair the lawful functions of the IRS. Despite having income in excess of the threshold amount in each of the years from 2001 through 2008, and in 2010, NASTASI willfully and knowingly failed to file his Forms 1040 or to pay the full amount of his personal income taxes due for the years 2001 through 2008, and 2010 in a timely manner.
Instead of paying the companies’ payroll taxes to the IRS, NASTASI used company funds to pay tens of thousands of dollars in personal expenses, for items including boat-related expenses, and $67,000 in cigar purchases. NASTASI also made false statements to the IRS in the course of their attempts to obtain delinquent tax returns and collect the corporate and personal taxes owed by NASTASI and his companies.
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NASTASI is charged with three counts of willful failure to pay over payroll taxes. Each of these counts carries a maximum penalty of five years in prison, a fine of the greatest of $250,000 or twice the gross gain to the defendant or twice the gross loss to the IRS, and restitution. NASTASI is also charged with one count of corruptly endeavoring to obstruct and impede the internal revenue laws, which carries a maximum penalty of three years in prison and a fine of the greatest of $250,000 or twice the gross gain to the defendant or twice the gross loss to the IRS.
Mr. Bharara thanked the IRS-Criminal Investigation and the U.S. Department of Justice Tax Division for their efforts in this case.
Southern District of New York Special Assistant United States Attorney and Department of Justice Tax Division Assistant Section Chief Nanette L. Davis is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.