They failed to report cash income, amounting to more than $1.5 million unreported.
A Texas business owner and his wife have been convicted of federal tax violations.
Dick Brocato Jr., 68, and his wife, Judith L. Brocato, 65, both of Beaumont, Texas, were convicted by a jury following a three-day trial. The Brocatos were found guilty of conspiracy to defraud the United States for purposes of impeding the government functions of the IRS in the collection of income tax and six counts of making and submitting false tax returns on both their personal and business for 2012-2014.
According to court records, the Brocatos owned a lawn service company, Superior Lawn Service, which was operated for tax purposes as an S corporation.
The Brocatos were the sole shareholders of the company, with Judith Brocato as corporate president, maintaining the books and records of the corporation and signing the corporate tax returns in that capacity.
The Brocatos underreported income received by checks from numerous customers of the company after having the checks cashed rather than depositing the checks into the company accounts. They then purposefully failed to report the cash income amount on the various tax returns.
According to the indictment, the underreported income amounted to $503,281 in 2012, $687,534 in 2013, and $513,498 in 2014.