Bus Company Owner Accused Of Failure To Pay Withholding, Taxes

SCARSDALE, NY — The owner of a school bus company has been arrested for not paying employee withholding taxes for six years. Westchester County District Attorney Anthony A. Scarpino Jr. said Thursday that Salvatore DiPaolo, 68, of Scarsdale, was arraigned on a felony complaint in Yonkers City Court.

He was charged with and pleaded not guilty to the following:

• Second-degree grand larceny, a felony
• Two counts of third-degree criminal tax fraud, felonies
• Fourth-degree criminal tax fraud, a felony
• Three counts of first-degree offering a false instrument for filing, felonies

DiPaolo, the owner of Service Transit Lines, Inc., a Yonkers-based for-hire commercial and school bus company, collected withholding taxes from his employees and failed to remit them to the New York State Department of Taxation and Finance from 2011 through 2016, Scarpino said.

The total amount of funds he collected and failed to remit during this period was approximately $127,000, according to authorities. DiPaolo was the person responsible for ensuring payments were made quarterly to the State Tax Department with the returns that were filed reporting the withholding taxes collected.

DiPaolo also owns Bus Services Corp., Service New York Tours Corp., and Serbusco, all of which are located in Yonkers, and filed his 2012, 2013 and 2014 New York State Personal Tax returns with the New York State Department of Taxation and Finance but did not include income totaling nearly $37,000 received from those businesses, as well, Scarpino said.

DiPaolo's bail/bond was set at $25,000, and his next court date is Nov. 20. If convicted of all charges, he faces up to 15 years in state prison.

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