Owner of New Jersey construction and real estate companies pleads guilty to tax evasion


Date: September 14, 2023

Contact: newsroom@ci.irs.gov

A New Jersey man pleaded guilty today to evading federal income taxes.

According to court documents and statements made in court, Salvatore Caravella, Jr. of Kinnelon, New Jersey, operated construction and real estate companies, including 2-C Construction Company Inc., Bella Construction of North Jersey LLC and 203 Harrison Street LLC. Caravella oversaw all aspects of the businesses' operations, including ensuring that all necessary tax returns on behalf of the companies were filed with the IRS. For 2015 through 2018, however, Caravella willfully did not report approximately $692,185 in self-employment income he earned from his businesses on his personal tax returns (Form 1040). Caravella's conduct caused a total tax loss to the IRS of $235,999.

Caravella faces a maximum penalty of five years in prison, a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department's Tax Division and U.S. Attorney Philip R. Sellinger for the District of New Jersey made the announcement.

IRS-Criminal Investigation is investigating the case.

Trial Attorney Christopher Magnani, formerly of the Tax Division, is prosecuting the case.