A Nevada restaurant owner pleaded guilty this month to tax evasion for not reporting cash sales
The owner of three Casa Don Juan restaurants in Las Vegas directed his bookkeeper to prepare false books and records that underreported cash sales at the restaurants by approximately $5.1 million. Those cash sales also flowed to the owner personally making not only the business returns false but also his personal returns. . Because three restaurants total sales were underreported the sales tax returns for the restaurants also were false during these years.
The IRS initiated an audit of Gil. During the audit, profit and loss statements that matched the figures reported on the tax returns were provided, and therefore false. False daily cash and sales reports purportedly printed from the restaurants’ point-of-sale systems were also provided to match the tax returns. . During interviews with the IRS, he falsely stated to the IRS agent conducting the audit, and later to IRS-Criminal Investigation special agents, that the falsified daily cash reports and point-of-sale records were accurate.
Ultimately, he got caught. He faces up to five years in prison and a period of supervised release, restitution and monetary penalties.
“Owners of restaurants that conduct a large number of cash transactions have to report all of their income, just like everyone else,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “We will investigate and prosecute those who shortchange their honest competitors and fellow citizens by willfully evading these laws.”
With 87,000 new revenue agents being hired, the IRS is planning to conduct more audits. Let us help you straighten out your past issues with amended returns, work out a plan to pay what is due over time, and avoid a criminal charge of tax evasion and jail.
Even if you have a corporation, you are personally liable for sales tax underreporting and payroll tax underreporting. Don’t go it alone. Our consultation is confidential and free.