Painter Who White Washes Tax Liability Pleads Guilty to Tax Evasion
April 30, 2019
According to DoJ
, a Long Island, New York, business owner pleaded guilty today to tax evasion.
According to documents filed with the court, Warren J. Krotz, 62, of Huntington, New York, owned and operated W. Krotz Enterprises Inc. (WKEI), a professional painting business that provided services throughout Long Island. Krotz admitted to evading both his individual and employment tax liabilities.
From Around 2010 Through 2016, Krotz Cashed Approximately $6 Million In Checks At Various Check-Cashing Facilities.
- These checks were gross receipts of WKEI, but Krotz did not report the amounts on WKEI’s corporate income tax returns.
- He admitted to paying approximately $2 million in wages to employees in cash.
- As a result, Krotz did not withhold and pay over to the Internal Revenue Service (IRS) approximately $300,000 in employment taxes.
Additionally, Krotz admitted to receiving approximately $3 million in income that he did not report on his personal tax returns.
In Total, Krotz Admitted to Causing a Tax Loss to the IRS of Approximately $1 Million.
The Honorable Joseph F. Bianco scheduled sentencing for Sept. 25, 2019. Krotz faces a statutory maximum sentence of 5 years in prison, as well as restitution and monetary penalties.
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Read more at: Tax Times blog