New York – Restaurant Owner Pleads Guilty to Stealing Over $196,000 in Sales Tax

SALT Report 1869 – The New York State Department of Taxation and Finance announced that a restaurant owner has pled guilty to stealing more than $196,000 in sales taxes that he had collected from his customers over a three year period. The restaurant owner also pled guilty to filing 18 false sales tax returns to hide his underreported sales, and to two counts of Criminal Tax Fraud in the Third Degree.

The charges for each offense are as follows:

  • Grand Larceny in the Second Degree is a class C felony,
  • Offering a False Instrument for Filing in the First Degree is a class E felony, and
  • Criminal Tax Fraud in the Third Degree is a class D felony

If convicted of all charges, the restaurant owner could face 15 years in state prison.

After he pled guilty, the restaurant owner was immediately placed on interim probation and ordered to surrender to the Monroe County Jail for work weekends.  A sentencing date has not been set; however, the Judge has ordered him to begin to repay the $196,583.00 of stolen sales tax.

The Department reminds taxpayers that they offer a Voluntary Disclosure and Compliance Program which allows delinquent taxpayers to become compliant without facing criminal prosecution or civil penalty.

For Further Information:

New York Department of Taxation and Finance – Press Release