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Ohio scrap metal recycler sues IRS

Mar 20, 2014 | 01:07 PM | Lisa Gordon

Tags  scrap, metal recycler, tax evasion, Ohio Scrap Corp. Dad's Auto Parts, Superior Towing & Road Service, Todd Zappone, Carrie Zappone, IRS Lisa Gordon


PITTSBURGH — An Ohio metal recycler is suing the Internal Revenue Service (IRS) for allegedly understating the total amount of money it seized and not returning the balance.

Delta-based Ohio Scrap Corp., Dad’s Auto Parts and Superior Towing & Road Service and owners Todd and Carrie Zappone were raided by IRS agents in 2012 for allegedly evading taxes and structuring bank deposits (withdrawing money from bank accounts in increments of less than $10,000) to avoid detection by federal authorities (amm.com, Dec. 3, 2012 ).

The company settled with the government and agreed to forfeit $1.2 million, according to documents filed in U.S. District Court in Ohio. However, Ohio Scrap claims that $3.15 million was taken by agents during the raid and not $1.26 million as claimed by the IRS.

The recycler said it submitted verified claims and amended verified claims asserting that the amount taken was $3.15 million, with the money divided into separate bundles of varying amounts with currency bands noting a date and the amount contained in each bundle, according to court documents.

The dates on the bands correspond with dates of withdrawals recorded with its bank accounts, it said.

A spokeswoman representing the IRS in Ohio said the agency does not comment on active litigation.




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