A Coram, New York, car wash owner pleaded guilty today to tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Seth D. DuCharme for the Eastern District of New York.
According to court documents and statements made in court, Nicholas Pascullo, 56, operated a car wash and detailing business called H2O Car Wash & Exotic Detailing LLC (H2O), based in Lindenhurst, New York. From 2012 to 2017, Pascullo attempted to evade income and employment taxes owed by him and H2O for calendar years 2012 through 2016. As part of the scheme, Pascullo filed false partnership and individual income tax returns with the IRS that underreported the gross receipts earned by H2O and the flow-through income received by Pascullo and his partners.
Pascullo also concealed assets and sources of income by manipulating H2O’s books and records, including its point-of-sale system, by failing to file certain reports with the IRS, and by making unreported cash payments to H2O’s employees and to himself. In 2012 and 2013, Pascullo willfully filed false quarterly employment tax returns (Forms 941) that underreported H2O’s payroll tax liabilities for these years, including the extent of its cash payroll. In total, Pascullo caused a combined tax loss to the IRS of approximately $315,000.
Sentencing will be held before U.S. District Judge Denis R. Hurley. At sentencing, Pascullo faces a statutory maximum sentence of five years. Pascullo also faces a period of supervised release, restitution, and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney DuCharme commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant Chief Jorge Almonte and Trial Attorney Eric Powers of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Official news published at https://www.justice.gov/opa/pr/long-island-car-wash-owner-pleads-guilty-tax-evasion