After five-year battle with IRS, Erie business owner held liable for big tax bill

Federal judge rules that Gary Cacchione, owner of Dovetail Gallery woodworking business, must pay overdue income taxes and taxes that were to have been withheld from paychecks and remitted to feds.

Erie Times-News

  • In December 2018, U.S. Department of Justice sued Erie business owner Gary Cacchione in federal court in Erie over unpaid taxes
  • Cacchione argued that he was relieved from liability due to Chapter 11 bankruptcy, tax provision in CARES Act
  • Judge rejects defenses, says Cacchione owes IRS nearly $430,000

An Erie business owner has been ordered to pay nearly $430,000 in back taxes and penalties in a federal case notable for the length of time it has spent on the docket and the size of the tax liability.

The Department of Justice’s Tax Division launched the case in December 2018 by filing suit in U.S. District Court in Erie against Gary Cacchione, owner of the Dovetail Gallery woodworking business near East 18th and Parade streets.

The government and Cacchione traded arguments in court for more than five years until a judge ruled against him on Tuesday. The judge said the IRS proved that Cacchione owes a total of $429,798 in two categories.

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