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Maspeth men evaded taxes

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Two Irish nationals pleaded guilty to tax evasion May 16 after federal investigators targeted their Maspeth construction business.

Eamonn McDonnell, 45, and Owen O’Reilly, 45, own MC&O Construction at 18-82 Flushing Ave.

In 2004, the pair failed to disclose $483,554 in cash wages paid to their employees, according to Joseph Foy, a spokesman for the Internal Revenue Service. Instead, the two would cash checks made out to MC&O Construction and then use that cash to pay employees off the books, Foy said.

The taxes, called FICA taxes, help to pay for government programs like Social Security and Medicare.

“Employment tax evasion is a serious crime,” Foy said.

The two business owners face up to five years in prison.

Even though the two business owners tried to pay their employees under the table, Foy said there is always a way to catch tax evaders.

“Information about these crimes comes from many sources,” he said. “Someone always knows something about a financial crime because money or some sort of paperwork is generated and passes from one person to another.”

Reach reporter Joe Anuta by e-mail at januta@cnglocal.com or by phone at 718-260-4566.

Updated 10:33 am, October 12, 2011
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