N.J. business owner admits to evading $3.4M in taxes

nj.com ^ | January 15, 2025 | Michael Eruco

[xxqqzz]

He paid no taxes on $8 million he got from hospitals for digitizing medical records. Instead of depositing the checks, he went to Philadelphia and cashed the checks at check cashing places. Enough to attract the attention of the feds.

[E. Pluribus Unum]

It was fun while it lasted.

[PeterPrinciple]

no 1099 filed by the businesses?

[ridesthemiles]

CHECK CASHING PLACES HAVE RESPONSIBILITY IN THIS, ALSO.

[rellic]

You have to have a SSN to file a 1099.
You’d be surprised how many “workers”
don’t have a SSN or use a stolen one.

[MV=PY]

Good point.

Looks like it just took this long for the IRS to spot it.

[Responsibility2nd]

The headline and the article contradict each other.

Did he evade 3.4 million in taxes or was it 3.4 million in income he failed to pay taxes on?

[PGR88]

Can’t blame him for trying.

[xxqqzz]

$8 million in income. $3.4 million in evaded taxes. Probably like 5 years in federal prison.

[Iron Munro]

Charged with one count?

He didn’t cash $8 million dollars worth of checks all at one time in one year!

He did it over a 7 year period so why isn’t he charged with at least 7 counts of tax evasion?

[hanamizu]

He did it over a 7 year period so why isn’t he charged with at least 7 counts of tax evasion?

---

Interesting how this works. Trump is ‘guilty’ of 34 felonies for checks amounting to $130,000 he paid to Stormy Daniels.

[CaptainPhilFan]

I’m not mad. Sorry he got caught. Our taxes go to bad things, why pay them?

[fuzzylogic]

Right. If he was smart about it, depositing SOME of it into his business account and paid taxes on it, he might have been able to continue getting away with it.

[circlecity]

“ He did it over a 7 year period so why isn’t he charged with at least 7 counts of tax evasion?”

I imagine he got a plea agreement to plea to one count.

[Jonty30]

He would have been smarter to defer his income and invest the deferment and pay out of the income generated.

[Jonty30]

They give a second figure of 8 million, so I take that to mean 8 million in income and 3.4 million in taxes.

[RoosterRedux]

Back in the Stone Age, I started my career as a CPA with one of the Big Eight (back then there were 8). My advice to clients, friends, and family was, “Never get cute with the IRS. Bite the bullet and pay what you owe. And most certainly, never cheat...not even a little bit.”

[rktman]

If he had paid his “fair share” everything would be Atom across the nation. Right max?

[Forward the Light Brigade]

Sorry, that is called a crime—now you need to do the time.

[pierrem15]

We was cashing over $1 million per year. How does one cash a check for like $20K at a check cashing place?

My guess is the check cashers were happy to get their cut of such a large amount.