While being audited, he created false invoices to cover up his tax misdeeds.
A Connecticut man pleaded guilty obstructing or impeding the due administration of tax laws.
According to court records, Donald Cariati Jr., 44, of Meriden, Connecticut, owns and operates Cariati Developers Inc., a snowplow and hauling business.
Between 2013 and 2017, Cariati paid several employees with company checks asserting that they were independent contractors or subcontractors so as not to withhold and pay over taxes to the IRS. Cariati also informed certain individuals that they were being paid off the books.
In late 2015, the IRS began an audit. During the course of this audit, Cariati caused fraudulent invoices to be made available to an IRS revenue agent. The invoices were purported to have been created in 2013 and purported to substantiate that individuals were appropriately considered subcontractors.
Cariati, who agreed that he caused a tax of loss of between $550,000 and $1.5 million, faces up to three years in prison.