Jay Clayton, U.S. Attorney for the Southern District of New York | Department of Justice
Philip Castracucco, a construction contractor from Westchester County, New York, pleaded guilty in federal court to filing false U.S. Individual Income Tax Returns. The plea was entered before U.S. District Judge Jessica G. L. Clarke in White Plains.
According to the United States Attorney for the Southern District of New York, Jay Clayton, and IRS Criminal Investigation Special Agent in Charge Harry T. Chavis, Jr., Castracucco underreported his business income on tax filings over several years.
“As he admitted today in court, Philip Castracucco filed false tax returns that underreported income from his business,” said U.S. Attorney Jay Clayton. “Castracucco attempted to avoid paying his full obligation back to the government, one we all collectively share for essential services and infrastructure. He has now pled guilty to a federal crime and faces time in prison. Cheating on your taxes is stealing from your fellow New Yorkers.”
“Philip Castracucco concealed income from the IRS and evaded the payment of taxes, contributing to our nation’s tax gap in the process. With today’s guilty plea, he is being held accountable. This outcome demonstrates the strength of our investigative efforts and our commitment to safeguarding the public from financial misconduct. He now faces the consequences of choosing fraud over compliance,” said IRS-CI Special Agent in Charge Harry T. Chavis, Jr.
Court documents state that Castracucco owned a contracting company that mainly worked on masonry projects around Westchester County. Between 2017 and 2022, he cashed more than $3.5 million worth of company checks through a check cashing service instead of depositing them into the business account. The cash was used for payroll—both for himself and employees—as well as personal expenses and company materials.
From 2018 through 2023, Castracucco filed S Corporation tax returns (IRS Forms 1120-S) for his company that left out these gross receipts and omitted over $1 million paid as salaries and wages to himself and others associated with his firm. He also submitted Employer’s Quarterly Federal Tax Returns (IRS Forms 941) that did not report these salary payments.
Additionally, between 2020 and 2023, he filed personal tax returns omitting more than $900,000 in business income received from his company.
Castracucco pleaded guilty to one count of making and subscribing to false individual income tax returns—a charge carrying a maximum sentence of three years in prison as set by Congress; however, sentencing will be determined by Judge Clarke at a hearing scheduled for September 9, 2026.
As part of his plea agreement, Castracucco agreed to pay restitution to the IRS totaling no less than $359,646.57—the additional amount owed due to his conduct.
The investigation was led by IRS-CI with prosecution handled by Assistant U.S. Attorney Jeffrey C. Coffman from the Office’s White Plains Division.
Mr. Clayton praised the outstanding investigative work of IRS-CI in this case.
