New York – Business Owner Charged with Grand Larceny, Filing False Returns and Failure to Pay Sales Tax

SALT Report 1213 – The New York State Department of Taxation and Finance announced that a New York resident who owns and operates a used car dealership was arrested and charged with second-degree grand larceny, five counts of first-degree offering a false instrument for filing, and five counts of first-degree falsifying business records, all felonies.

According to the felony complaint, during the period of December 1, 2002 through November 30, 2007, the car dealership earned in excess of $1,255,500 in unreported taxable sales and collected but failed to remit sales tax in the amount of $102,000.  Further, the business owner prepared and filed false sales tax returns for each taxable period with the intent to defraud the State and tried to conceal the commission of the crime.  So far, no court date has been scheduled.

The New York State Tax Department reminds taxpayers that if a business has not remitted all of the sales tax it has collected, they are urged to enter the State’s Voluntary Disclosure and Compliance Program to correct past returns and avoid both civil and criminal penalties.

The Voluntary Disclosure and Compliance program can help taxpayers who owe back taxes avoid penalties and criminal charges if they:

  • Tell the Department what taxes they owe
  • Pay their back taxes; and
  • Enter an agreement to pay all future taxes