The Illinois man hid income from his tax preparer and underreported his company’s income to the IRS by $1.7 million.
The owner of an Illinois waste management company pleaded guilty to six counts of filing false income tax returns and one count of structuring cash withdrawals to avoid detection by the Internal Revenue Service.
Joseph S. Deno, of Kankakee, Ill., was the sole shareholder, owner and operator of ABC Disposal.
Deno admitted that from 2005 through 2010, in order to lower his individual gross income, he withheld financial records from his tax preparer. This resulted in underreporting his company’s gross receipts by approximately $1.7 million for the tax years 2005 through 2010 and underpayment of his federal income taxes.
Deno also pleaded guilty to one count of structuring cash withdrawals from three bank accounts on 22 occasions over a one-year period, from March 2010 to March 2011. In 2010, Deno decided to retire and wanted to access the funds he had hidden from his accountant and the IRS. To avoid a currency transaction report from being prepared by his bank and sent to federal authorities, he withdrew cash from his accounts in amounts just under the $10,000 threshold, for a total of $190,700. Financial institutions are required to complete and file CTRs with the IRS for any currency transactions in excess of $10,000.
Deno has paid $905,261 in restitution to the IRS. He faces up to three years in prison for each count of filing a false income tax return.