Rhode Island Businessman Pleads Guilty To Attempted Tax Evasion
Claimed Underreported Income To The IRS Was Cash “gifts” Paid By Clients
PROVIDENCE, R.I. – Richard Scialo, 58, owner and operator of Personal Touch, a Providence based home and business cleaning service, pleaded guilty in federal court in Providence today to attempting to evade the payment of more than $180,000 in federal taxes by underreporting taxable income he claimed was cash “gifts” from some of his clients for whom he provided cleaning services.
According to information presented to the court, 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