Evgeny A. Friedman, 46, calls himself the “Taxi King.” On May 23, he pleaded guilty to tax fraud to the tune of $5 million, as reported by licpost.

Friedman is the former CEO of Taxiclub Management Inc. This company once had 800 medallion taxicabs based out of Long Island.

The original indictment claimed that Freidman and attorney Andreea Dumitru plotted to avoid paying the “MTA Tax.”

The MTA Tax is a state tax that is automatically added on to taxicab fares.

The indictment alleged that he filed “improper or falsified tax returns” to avoid paying the tax.

With his guilty plea, he is agreeing to pay back the $5 million he owes to the state of New York in installments.

As long as he follows the agreement, his sentence is adjourned so that he can make the payments. Once he satisfies the terms of the agreement, he will receive five years of probation.

It’s better than jail time, we have to say!

Lesson Learned

When you willfully withhold your tax payments, it is a criminal offense punishable by law.

You can safely assume that at some point, it will come to light.

So if you are thinking of doing it… just don’t!

In this case, the “taxi king” had received the money, he failed to pass it on.

Businesses of all sizes are entrusted with federal and state tax revenue. From payroll to sales tax, you must handle it with care. This also includes withholding the proper amount of tax from employees’ paychecks.

You must also make sure that you actually pass on that revenue on to the taxing authority, on time. There are penalties and interest (and even possible jail time) to pay if you do not.

In the “taxi king’s” case, not only did he not pass the revenue along, he willfully plotted to deceive the government and falsified documents to do so. (Hence the “fraud” charge).

Get the Help You Need

Facing trouble with the IRS over failure to pay payroll tax, sales tax, or your employees’ taxes? It’s important to act now. Consult an experienced tax professional to analyze your situation and explain your options.

At SFS Tax Problem Solutions, we have been helping businesses solve their tax problems for our  35 years. Enlist the expertise of an Enrolled Agent – the only federally-licensed tax practitioner who specializes in taxation and has unlimited rights to represent taxpayers before the IRS.

Call (772) 337-1040 today for your free, no-obligation consultation or make an appointment online now.

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Jeffrey Schneider, EA, CTRS, NTPI Fellow has the knowledge and expertise to help you reach a favorable outcome with the IRS. He is the head honcho at SFS Tax & Accounting Services as well as the Enrolled Agent and Certified Tax Resolution Specialist for SFS Tax Problem Solutions.
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Now What? I Got A Tax Notice From The IRS. Help! Defining and deconstructing the scary and confusing letters that land in your mailbox. Jeff defines and deconstructs the scary and confusing letters in a fashion that mixes attention to detail with humor and an intricate clarification of what is what in the world of the IRS.

The book is available in paperback and ebook on https://Amazon.com
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For more on SFS Tax & Accounting Services, visit http://sfstaxacct.com/
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