ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jeffrey Cannizzo, 54 of Irondequoit, NY, pleaded guilty to willfully failing to pay a tax before U.S. District Charles J. Siragusa. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that the defendant owned and operated Cannizzo Contacting Corporation, an electrical contracting business. Cannizzo and his business served as an in-house electrical contractor for the company. The Company agreed to pay Cannizzo and his business a wage of approximately $40 per hour for each employee, including defendant. Cannizzo made money from this arrangement by paying his employees less than $40 per hour for their work, in addition to the $40 per hour that defendant earned from his work there.
The defendant's business earned significant income from his arrangement with the Company, and was required to make estimated payroll tax payments. Cannizzo contracted with Paychex to handle the weekly payroll processing, including payments of payroll taxes. In 2002, Paychex stopped paying Cannizzo Contracting Corporation’s business payroll taxes, but continued to process the payroll, informed defendant of the estimated payroll tax payments owed, and provided him with copies of Employer’s Quarterly Federal Tax Returns - Form 941-for each quarter from 2007 forward. The defendant however failed to make the estimated payroll tax payments on behalf of his business. Cannizzo failed to pay a total of $135,360.62 to the Internal Revenue Service.
The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of James D. Robnett, Special Agent in Charge, New York Field Office.
Sentencing is scheduled for Dec. 11, 2017, at 9:15 a.m. before Judge Siragusa.
Source: U.S. Department of Justice, Office of the United States Attorneys
