A Sussex County
man will serve 24 months in prison for not paying employment taxes as owner of
two Newton-based companies.
Edward Albanese,
51, of Newton, previously pleaded guilty before U.S. District Court Judge
Dennis Cavanaugh to two counts of tax evasion for failing to report and pay
taxes from his two businesses, DDB Interior Contracting Inc. and Regency
Interior LLC, the United States Attorney District of New Jersey said on Monday.
In addition to
his prison term, Albanese will be on supervised release for three years and
will be required to pay a total of $1.8 million in taxes, penalties and
interest to the Internal Revenue Service, the office officials said.
In the last
quarter of 2008, Albanese paid $164,261 in "under the table" cash to
Regency Employees. On Jan. 31, 2009, he had the company field a quarterly
federal tax return form to evade payment of employment taxes totaling $49,771,
according to the U.S. Attorney's Office.
In the second
quarter of 2005, Albanese paid his employees at DDB some $78,043 in cash and
evaded payment of $23,647 in employment taxes by filing a fake Form 941, the
U.S. Attorney's Office said.
Albanese
admitted he paid more than $2.3 million in cash to employees of both companies
from 2005 to 2008, and as a result, owes $711,890 in employment taxes, the
federal attorney's office said.
Federal
investigators found $50,957 following a search of DDB offices.
Reported by Minhaj
Hassan of Daily Record.com
