New Jersey Contractor Sentenced for Tax Evasion

Written by TaxSqueal. Posted in Tax Fraud Cases

On July 22, 2010, in Trenton, N.J., Daniel Carlo, owner of a construction company, was sentenced to 12 months and a day in prison to be followed by two years of supervised release.  Carlo pleaded guilty in August 2009 to an Information charging him with tax evasion for failing to report $242,764 in income.  According to court documents and statements made in court, Carlo owned and operated a construction company under the name of “Cartar” from his residence in Barnegat. Carlo admitted that in April 2006, he prepared, signed and filed a false 2005 U.S. Individual Income Tax Return which stated that his taxable income for calendar year 2005 was zero.  Carlo failed to report taxable income of approximately $242,764, resulting in approximately $78,792 in tax due and owing.  Carlo admitted that in an effort to hide the unreported income, he deposited client receipts into bank accounts held in the names of his wife and daughter.