Tax Talk

CEO Writes off 39,000 Square Foot House, Soon to Spend Time In a 6x8 Room

Joseph Nocito, the CEO and President of a Pittsburgh health services company pleaded guilty to conspiracy to defraud the United States.

Between 2006 and 2012, Nocito wrote off millions of dollars of personal expenses against other companies he owned. He used the funds to build a 39,000-square-foot home known as Villa Noci. Nocito wrote off the exterior and interior construction of the home, design and furnishings, an outdoor pool, landscaping, a playground, a tennis court, and a bocce court.

He also expensed millions of dollars for luxury cars, personal fitness, and private school tuition for his grandchildren.

On the books, Nocito claimed these expenses were management, administrative and consulting costs. This resulted in a significant underreporting of company profits. Between 2006 and 2012, he avoided paying more than four million dollars in personal income taxes and an estimated 11 million dollars in corporate income tax.

As part of his guilty plea, Nocito has agreed to pay the IRS $15,824,056 prior to his sentencing date. He faces up to five years in prison and a fine of up to $250,000.

Mark Diehl is the founder and president of Diehl CPA LLC and a Certified Public Accountant licensed in Alaska. He has a Bachelor of Science and a Master of Science degree in Accounting from Western Governors University. Mark has previously worked with the Minnesota Department of Revenue as a tax auditor, so he knows the audit process very well.

Diehl CPA is Alaska's expert in Tax Negotiation and Mediation.