The owner of a New Jersey construction and remodeling business admitted to evading more than $100,000 in taxes by depositing business checks into his personal accounts and failing to report that income.
Sing Chan, 32, of West Orange, N.J., owned Custom Design and Carpentry. During tax years 2008 and 2009, Chan sometimes received payment for services through checks made payable to Custom Design, and sometimes checks were made out to Chan directly. The checks made payable to Custom Design were deposited into Chan’s business bank account. The checks made payable to Chan were deposited into Chan’s personal bank accounts at various banks, though the memo portions typically contained a note referencing construction and remodeling work he performed.
Chan admitted that for tax years 2008 and 2009, he filed individual tax returns in which he purported to report all of his income from Custom Design, but failed to report the income that he deposited into his personal bank accounts — approximately $410,856. Chan’s failure to disclose the income caused a tax loss to the United States of approximately $100,406.
As part of his guilty plea, Chan has agreed to make full restitution to the IRS. He faces up to three years in prison and a fine of up to $250,000.
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