PROVIDENCE, R.I. (WPRI) -- A Rhode Island businessman pleaded guilty in federal court on Thursday.
Richard Scialo, 58, owner and operator of Providence-based cleaning service Personal Touch, pleaded guilty to attempting to evade a payment of more than $180,000 in federal taxes.
Scialo underreported the taxable income, which he claimed was made up of cash "gifts" from some of his clients for whom he provided cleaning services.
According to information presented to the court, a routine IRS audit in 2008 reported all income generated by Scialo's business was taxable, including cash "gifts" provided by clients for services rendered by his company.
The information showed that Scialo failed to accurately report income generated by his business through tax year 2009.
A further investigation by IRS agents revealed that Scialo failed to accurately report his business's taxable income for tax years 2004 through 2009, and that he failed to pay $181,417 in federal taxes.
Attempted tax evasion is punishable by up to five years in federal prison, three years supervised release, and a fine of $250,000.
Scialo's sentencing is scheduled for July 2013.
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