Monday, Nov. 18, 2013 | 5:03 p.m.
The owner of Sunset Collision Center in Henderson pleaded guilty today in federal court to one count of tax evasion, according to the Internal Revenue Service.
An indictment filed in October 2011 charged Robert D’Errico, 64, with three counts of tax evasion for 2006, 2007 and 2008, officials said. Federal authorities said D’Errico evaded paying taxes on more than $450,000 of income during those three tax years.
In 2009, D’Errico began listing his business for sale online and stated that “his discretionary take-home cash is $150,000 per year and (he) has receipts to prove it,” according to the plea agreement.
When D’Errico met with a potential buyer, he stated that he stopped accepting checks and was taking cash deductibles from customers, in addition to selling excess inventory for cash, officials said.
D’Errico told the buyer that he kept journals of the cash generated “off the books” and proceeded to show the buyer how the journals and notations on client files corresponded with potential tax-free cash income, officials said.
Federal agents executed a search warrant at D’Errico’s home and found journals and financial statements documenting cash D’Errico received from the business that he never reported on official financial statements.
D’Errico later admitted that he did not report the additional cash income to his tax preparer in Ohio.
D’Errico faces a $100,000 fine and maximum of five years in prison. He is scheduled to be sentenced Feb. 18 in front of Judge James Mahan.