A former general contractor in Massachusetts has been sentenced for tax evasion after concealing millions of dollars in business income from the Internal Revenue Service (IRS). John Michael Sacco, 54, previously of Quincy and owner of JMS Contracting, received his sentence in federal court in Boston.
U.S. Senior District Court Judge Patti B. Saris sentenced Sacco to six months of home confinement and three years of supervised release. He was also ordered to pay $3,059,887 in restitution to the IRS.
According to prosecutors, between 2014 and 2021 Sacco managed construction projects through JMS Contracting and received more than $9 million from customers. Instead of depositing these funds into business bank accounts, he cashed most checks from customers directly. The proceeds were used to purchase supplies and pay subcontractors in cash; remaining funds were used for personal expenses.
Authorities stated that Sacco did not issue required tax forms to subcontractors or file necessary forms with the IRS regarding payments made by JMS to its subcontractors. By failing to report actual receipts on tax returns for some years—and filing no returns at all in others—Sacco underreported his personal income taxes, resulting in a loss exceeding $3 million for the IRS.
“United States Attorney Leah B. Foley and Thomas Demeo, Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office made the announcement. Assistant U.S. Attorney David M. Holcomb of the Criminal Division prosecuted the case.”