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IRS Uncovers Major Tax Fraud by Rochester Contractor
Gregory J. Coco, a New York contractor and owner of Century Asphalt Maintenance, has pleaded guilty to committing tax fraud by filing a false tax return and hiding over $1.7 million in income from the IRS.
This isn’t just a bad mistake, it’s a felony. And it’s a wake-up call for every small business owner operating without strict compliance. Coco now faces a maximum sentence of three years in federal prison and a $250,000 fine. The charges were announced by U.S. Attorney Michael DiGiacomo, making headlines across the region and in IRS enforcement bulletins nationwide.
At IRSProb.com, we cover major tax fraud cases like this to help honest taxpayers stay informed, and to help those who are in trouble take action before it’s too late.
Breaking Down the Tax Fraud: $1.7M in Hidden Income
The government alleges that between 2017 and 2022, Coco received a total of $2,611,685.57 in payments from customers for asphalt paving and driveway sealing jobs. However, he only reported a small portion of that income to his tax preparer.
By concealing $1,704,556.57 in earnings, Coco evaded payment of $456,683.00 in federal income taxes.
This wasn’t a bookkeeping error. It was intentional tax fraud, a deliberate decision to deceive the IRS and profit from it. Hiding income like this is a federal crime and qualifies as a felony under the Internal Revenue Code (IRC).
How IRS Criminal Investigation Took Him Down
The case was investigated by IRS Criminal Investigation (IRS-CI), the law enforcement wing of the IRS. This division is responsible for tracking down serious financial crimes, including tax fraud, money laundering, and schemes that hurt the integrity of the tax system.
Special Agent in Charge Harry Chavis led the investigation in this case, using financial forensic tools, audits, banking records, and payment trail analysis to prove the fraud.
IRS-CI has a conviction rate of over 90%. That means when they go after you, they almost always have the evidence lined up. The data doesn’t lie. Once they file charges in a tax fraud investigation, it’s nearly impossible to walk away without serious consequences.
Sentencing Set for October 7, 2025
Coco is scheduled for sentencing on October 7, 2025, in front of U.S. District Judge Meredith A. Vacca. At that hearing, the court will look at multiple factors:
- How much income was concealed
- The duration of the tax fraud scheme
- Coco’s intent and level of cooperation
- Sentencing guidelines for federal tax fraud cases
He could be sentenced to prison, probation, restitution, or a combination of all three, depending on how the court evaluates his conduct and the damage caused to the government.
The Bigger Problem: Tax Fraud Is Common in Small Business
This case isn’t a one-off. Tax fraud happens every day in small businesses, especially ones that operate heavily in cash, like:
- Construction
- Landscaping
- HVAC and maintenance
- Restaurants
- Personal care (barbers, stylists)
- Ride-share and gig economy work
Many business owners either underreport income, take improper deductions, or fail to file returns entirely. And most think they won’t get caught.
But here’s the truth: the IRS is actively expanding its enforcement budget. Under the Inflation Reduction Act, billions have been earmarked for modernizing IRS systems and hiring new agents to go after tax fraud, starting with small businesses.
What Counts as Tax Fraud?
Some people think you have to run a huge operation to be charged with tax fraud. You don’t.
Here are examples of common behaviors that qualify:
- Hiding cash payments
- Failing to report all bank deposits
- Creating false expenses or fake deductions
- Using personal expenses as business write-offs
- Using multiple sets of books
- Understating business income to preparers or the IRS
Whether intentional or “accidental,” these actions can lead to audits, penalties, and even criminal charges. The line between tax negligence and tax fraud is thin, and crossing it can wreck your future.
Why You Can’t Ignore the IRS
If you’ve been ignoring IRS letters, delaying tax filings, or operating under-the-table, Coco’s story should serve as a reality check. Tax fraud doesn’t go unnoticed forever.
The IRS uses:
- AI to flag suspicious returns
- Bank and payment processor reports (1099-Ks)
- Random and targeted audits
- Public tips and whistleblower programs
Once you’re in the system, it’s hard to get out without facing consequences.
If You’re in Trouble, Act Now
At IRSProb.com, we help people before their tax problems turn into criminal cases.
If you’re dealing with any of the following:
- Unfiled returns
- IRS letters or audit threats
- Back taxes you can’t pay
- Income you’ve failed to report
You need to act now. Don’t wait until agents are at your door or a court summons shows up in the mail.
IRSProb.com Can Help You Avoid What Happened to Coco
Coco made a decision that cost him his business, his freedom, and his financial future. But here’s the thing: it didn’t have to end this way.
If he had hired the right tax professionals early on, he could’ve negotiated a settlement, set up a payment plan, or filed amended returns—all legally and without facing jail time.
We’ve helped hundreds of clients resolve IRS problems and avoid worst-case outcomes. You don’t need to panic, but you do need to be proactive.
Final Warning: Tax Fraud Is a Crime, Not a Mistake
The IRS doesn’t treat tax fraud like a traffic ticket. It treats it like theft from the federal government. If you’re caught, you can be charged, fined, and even locked up.
Don’t make the same mistake Gregory Coco made. Take action. Get help. Stay compliant.
