A Meriden construction company has pleaded guilty to one count of filing a false tax return. The incident dates to 2006.
According to a court statement, in Feb. 2006, SRC Construction, a real estate development and construction management firm, filed a false Form 1120 for the fiscal year ending April 30, 2005, that overstated expenses. As a result, for the 2004 tax year, the company failed to report corporate income totaling $296,642, resulting in tax loss of $112,609.
The charges stem from claiming non-deductible business expenses could be applied as deductible for tax purposes. The indictment did not name individual employees responsible.
Sentencing has been scheduled for Oct. 21, 2016, at which time SRC Construction faces a maximum term of probation of five years and a fine of up to $500,000. In addition to paying all back taxes, interest and penalties, SRC has agreed to pay a fine in the amount of $250,000.
