Guilty plea in couple’s tax case

Feds: Failed to report $8M in income from landscaping company

A Connecticut couple have pleaded guilty to charges stemming from a large tax evasion scheme, federal officials said.

Anthony Niro, 60, of Newington, pleaded guilty to one count of tax evasion on Jan. 4. His wife, 59-year-old Nanette Niro, pleaded guilty to the same charge in federal court in Hartford this week. Each faces a maximum term of five years in prison, according to the U.S. Attorney’s office.

According to court records, Anthony Niro was a co-owner of A. Niro Landscape Contractors, Inc., a business that provided landscaping and snowplowing services for large commercial properties and personal residences. Nanette Niro was the bookkeeper for ANLC and maintained the financial records, federal officials said.

For the 2006 through 2010 tax years, Anthony Niro, his unnamed business partner and Nanette Niro reportedly conspired to evade both corporate and individual income tax by depositing a large portion of ANLC’S receipts into two non-interest-bearing checking accounts, according to federal officials.

The three then reportedly transferred money out of the accounts to themselves, federal officials said.

According to federal officials, the three then failed to provide information about these accounts to the tax-return preparer who prepared ANLC’S federal income tax returns. The 2006 through 2009 tax returns were filed with the IRS, but a 2010 tax return was not filed, federal officials said.

“Through this scheme, nearly $14 million in ANLC’S gross receipts were not reported to the IRS for the 2006 through 2010 tax years, resulting in a tax loss of $2,931,011,” the U.S. Attorney’s office said in a statement.

Federal officials also claimed

that Anthony Niro and his business partner owned numerous residential and commercial properties through several entities.

“They earned rental income through some of the properties, and some of that income was also not reported to the IRS,” the U.S. Attorney’s office said.

Anthony and Nanette Niro failed to report $8,022,644.90 in income to the IRS for the 2006 through 2010 tax years, resulting in a tax loss of $1,472,735, according to court records.

“As an example, on their 2009 federal individual tax return, Anthony and Nanette Niro reported taxable income of $131,895 when their correct taxable income for that year was $1,891,955,” the U.S. Attorney’s office reported.

Anthony and Nanette Niro have paid restitution for $1,472,735, federal officials said.

They are still required to pay substantial financial penalties and interest, according to the U.S. Attorney’s office.