Rochester Contractor Sentenced for Filing False Tax Returns

Written by TaxSqueal. Posted in Blog, Recent Tax Fraud Cases

Date: January 29, 2020

Contact: newsroom@ci.irs.gov

ROCHESTER, N.Y. – Jason Bassett of Rochester, NY, who was convicted of filing a false tax return, was sentenced to serve six months in prison and six months home confinement by U.S. District Judge Elizabeth Wolford.

The defendant owned and operated a paving and sealing company, which provided both personal and commercial sealing and paving services in the Rochester area. After receiving payment for services provided, Bassett failed to deposit all of the business income into the business bank account. The defendant would cash some business checks but failed to place them into the banking system.

Bassett did not advise his tax return preparer that he had cashed numerous business checks. As a result, the defendant knowingly caused the preparation of false personal income tax returns. For the years 2012 through 2015, Bassett failed to report approximately $1,704,873.89 in income on his tax returns, which resulted in the defendant failing to pay approximately $378,331 in taxes to the Internal Revenue Service. The defendant has paid back that amount to the IRS, but still owes more than $400,000 in penalties and interest.

The defendant also, in the course of failing to report all of his gross income from his sealing and paving business, failed to withhold taxes from his employees’ wages, did not provide his employees with Form W-2s, and did not report this on any other return required to be filed with the Internal Revenue Service.

The sentencing is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larsen, Special