New Jersey Man Pleads Guilty to Tax Evasion
Salvatore Caravella, Jr., a resident of Kinnelon, New Jersey, has entered a guilty plea today for the evasion of federal income taxes. This development comes in light of information revealed in court documents and statements presented during the court proceedings.
Operational Oversight of Construction and Real Estate Companies
Salvatore Caravella, Jr. was deeply involved in the management of various businesses, including 2-C Construction Company Inc., Bella Construction of North Jersey LLC, and 203 Harrison Street LLC. His responsibilities encompassed overseeing all operational aspects of these companies, which included the crucial task of ensuring the submission of necessary tax returns to the Internal Revenue Service (IRS).
Failure to Report Significant Income
However, a critical lapse was discovered in Caravella’s financial practices during the years spanning 2015 to 2018. During this period, he deliberately neglected to report a substantial sum of approximately $692,185 in self-employment income earned from his businesses on his personal tax returns (Form 1040). This omission resulted in a substantial tax loss for the IRS, totaling $235,999.
Potential Penalties and Sentencing
Salvatore Caravella, Jr. now faces the possibility of severe legal consequences. He could be sentenced to a maximum of five years in prison, in addition to a period of supervised release, restitution, and monetary penalties. The final judgment will be determined by a federal district court judge, who will take into account various factors, including the U.S. Sentencing Guidelines and other statutory considerations.
Announcement by Key Officials
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Philip R. Sellinger for the District of New Jersey jointly announced this development. It’s important to note that the IRS-Criminal Investigation is actively probing this case, and Trial Attorney Christopher Magnani, formerly of the Tax Division, is handling the prosecution.