In a shocking turn of events, Rudolph Ferrucci, the proprietor of a popular beachfront restaurant in Massachusetts, Sandy’s, has admitted to concealing income from the IRS and paying his staff under the table.
Between the years 2016 and 2020, Ferrucci siphoned off a portion of the restaurant’s sales receipts, using the funds to compensate employees and suppliers covertly. Furthermore, these diverted funds served as unreported personal income for both Ferrucci and his spouse.
To keep his fraudulent activities hidden, Ferrucci maintained two sets of sales records. He cunningly presented the accountant with the set that conveniently omitted the cash diversion.
The scale of his tax evasion is staggering, with an underreporting of personal income amounting to a whopping $1.2 million, leading to a staggering $250,000 loss for the IRS.
To add to the deception, Ferrucci meticulously recorded the under-the-table payments to his employees in a handwritten ledger within the second set of books. This clandestine accounting unveiled more than $315,000 in cash wages, on which payroll and income taxes were never paid. Additionally, $75,000 in employment taxes remained unpaid.
With the truth finally exposed, Ferrucci is not only required to make restitution but could also be facing up to 10 years of imprisonment.
This unsettling case serves as a stark reminder of the importance of honesty and transparency in financial matters. Let it be a lesson to all business owners about the dire consequences of attempting to defraud the IRS and evade taxes.
If you’re in trouble with the IRS, don’t wait, call McCauley Law Office, P.C. today for a free consultation! We’ll get you out of your Tax Jam and get the IRS off your back. When the IRS knocks, let McCauley Law answer.