PITTSBURGH An Ohio recycler and its related companies are under investigation by the Internal Revenue Service on suspicion of tax evasion and related activities, which culminated in a raid last month.
Delta-based Ohio Scrap Corp., Dads Auto Parts, Superior Towing & Road Service and owners Todd and Carrie Zappone are being investigated for alleged tax evasion, structuring (withdrawing money from bank accounts in increments of less than $10,000 to avoid detection by federal authorities), and failing to collect, account for or overpay tax, according to a search warrant filed in U.S. District Court in Ohio.
Raids of Ohio Scrap and the Zappone residence occurred in November, but the search warrant was only recently made available to the public; evidence seized included bank account records and computers. No formal charges have been filed.
In total, 147 suspicious withdrawals were made by Carrie and Todd Zappone totaling $1,130,399, according to court documents. They also are suspected of failing to file income tax returns in 2010 and 2011, although they deposited $200,000 into their personal checking account during that time, according to court documents. K-1 partnership documents suggest that both received income during this time period.
The pair also declared negative income from 2007 through 2009, but they made $20,000 in mortgage interest payments in 2009.
Ohio Scrap made $1.5 million in deposits in 2010 but did not file most of their required business tax returns, according to court papers.
The company declined to comment.