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