Owner And Operator Of Yonkers Construction Company Pleads Guilty In Manhattan Federal Court To $800,000 Income And Payroll Tax Fraud
summary
Tariq Tahir, owner of DNS Construction Corporation, pled guilty to two counts of tax fraud for evading over $800,000 in income and payroll taxes from 2006 to 2008 by cashing business checks instead of depositing them and paying employees in cash, and faces up to six years in prison plus $883,000 in restitution.
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Tariq Tahir, owner of Yonkers-based DNS Construction Corporation, pled guilty in Manhattan federal court to two counts of tax fraud for failing to pay over $800,000 in federal income and payroll taxes between 2006 and 2008. He concealed company revenues by cashing business checks at check-cashing outlets rather than depositing them into corporate accounts and paid employees in cash to avoid reporting wages and withholding taxes. As part of his plea agreement, he agreed to pay $771,000 in restitution to the IRS and $112,000 to New York State, and faces a maximum sentence of six years in prison.
narrative
Tariq Tahir, owner and operator of Yonkers-based DNS Construction Corporation, pled guilty in Manhattan federal court to two counts of tax fraud for evading over $800,000 in federal income and payroll taxes from 2006 to 2008. To conceal the company’s true revenues, he cashed business checks at multiple check-cashing outlets in Manhattan and Brooklyn instead of depositing them into DNS’s bank accounts. He also paid employees primarily in cash to avoid reporting wages and thereby evade payroll tax obligations. As part of his plea agreement, Tahir agreed to pay $771,000 in restitution to the IRS and $112,000 to New York State. He faces a maximum sentence of three years per count, totaling six years in prison, with sentencing scheduled for June 5, 2015. The case was prosecuted by the Southern District of New York’s Complex Frauds and Cybercrime Unit, with investigative support from IRS-Criminal Investigation and the Department of Justice Tax Division. Authorities emphasized that such cash-based tax evasion places an unfair burden on law-abiding taxpayers and is actively pursued by federal agencies.
Classified financial-fraud(confidence 80%). EDGAR detection: forms 10-K/10-Q/8-K/NT 10-K· recall 67% / precision 23%. detection rule →
Parties
dns construction corporationjonathan cohenPreet Bhararashantelle p. kitchenspecial agent in charge of the new york field office of irs-cidTariq Tahir
Keywords
taxtahirmanhattan federalfederaldnsmanhattanpayrolltaxesowner operatorconstruction companypayroll taxesconstructionfraudlinkoperator yonkers
Exhibits & Attached Documents (1)
Extracted insights
Dollar amounts 3
- $800K $800,000 $100K–$1M
- $771K $771,000 $100K–$1M
- $112K $112,000 $100K–$1M
Entities 6
- company dns construction corporation
- person jonathan cohen
- person Preet Bharara
- person shantelle p. kitchen
- agency special agent in charge of the new york field office of irs-cid
- person Tariq Tahir
Triples 13
- Tariq Tahir pleaded guilty to Two Counts Of Tax Fraud For $800,000 In Income And Payroll Taxes
- Tariq Tahir owned and operated DNS Construction Corporation
- DNS Construction Corporation was based in Yonkers
- Tariq Tahir engaged in tax fraud from 2006 To 2008
- Tariq Tahir cashed checks at Multiple Check-Cashing Businesses In Manhattan And Brooklyn
- Tariq Tahir paid employees in Cash
- Tariq Tahir faces maximum sentence of Six Years In Prison
- Tariq Tahir required to pay restitution to IRS $771,000
- Tariq Tahir required to pay restitution to New York State
- Tariq Tahir scheduled to be sentenced on June 5, 2015
- Preet Bharara is United States Attorney For The Southern District Of New York
- Shantelle P. Kitchen is Special Agent In Charge Of The New York Field Office Of IRS-CID
- Jonathan Cohen is in charge of The Prosecution
PDF (from attached: information)
Text layers
Extracted body text (4,026c)
Press Release Owner And Operator Of Yonkers Construction Company Pleads Guilty In Manhattan Federal Court To $800,000 Income And Payroll Tax Fraud Tuesday, March 3, 2015 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Preet Bharara, the United States Attorney for the Southern District of New York, and Shantelle P. Kitchen, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation Division (“IRS-CID”), announced today that TARIQ TAHIR, the owner and operator of DNS Construction Corporation, pled guilty today in Manhattan federal court to two counts of tax fraud for failing to pay over $800,000 in income taxes and payroll taxes from 2006 to 2008. TAHIR pled guilty before U.S. District Judge Andrew L. Carter, Jr. Manhattan U.S. Attorney Preet Bharara said: “As a business owner, Tariq Tahir had a responsibility to pay his fair share in taxes. With his guilty plea today, he has acknowledged that he neglected that responsibility and must face the consequences.” IRS-CI Special Agent in Charge Shantelle P. Kitchen said: “Conducting business in cash for the express purpose of evading taxes does not guarantee that you will avoid detection. Business owners who willfully underreport their business receipts and fail to pay over the correct amount of payroll taxes ultimately place additional burdens on law abiding taxpayers. IRS-Criminal Investigation is committed to ensuring that every taxpayer pays his or her fair share.” According to the criminal information, other documents filed in Manhattan federal court, and statements made at related court proceedings: TAHIR owned and operated a Yonkers-based construction company named DNS Construction Corporation (“DNS”). From 2006 through 2008, TAHIR engaged in two tax fraud schemes in order to avoid paying over $800,000 in income taxes and payroll taxes that were due and owing by DNS. To execute the first scheme, TAHIR cashed checks at multiple check-cashing businesses in Manhattan and Brooklyn, rather than depositing those checks into the bank accounts of DNS, so that he could conceal DNS’s true revenues from state and federal tax authorities. To carry out the second scheme, TAHIR paid DNS’s employees primarily in cash so that he would be able to omit these salary payments from DNS’s federal tax returns without detection by tax authorities. By failing to report these payments, TAHIR underpaid the federal payroll taxes due and owing by DNS during this period. TAHIR, 66, of Yonkers, faces a maximum sentence of three years in prison for each of the tax fraud counts, for a total maximum sentence of six years in prison. As part of his plea agreement, TAHIR is also required to pay more than $771,000 in restitution to the IRS and more than $112,000 in restitution to New York State. He is scheduled to be sentenced by Judge Carter on Friday, June 5, 2015, at 10:00 a.m. Mr. Bharara praised the work of the Internal Revenue Service, Criminal Investigation Division. Mr. Bharara also thanked the U.S. Department of Justice’s Tax Division for their assistance in the investigation. This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Jonathan Cohen is in charge of the prosecution. U.S. v. Tariq Tahir Information Updated May 14, 2015 Component USAO - New York, Southern Press Release Number: 15-058
OCR text (4,026c · plain-text · 99% conf)
Press Release Owner And Operator Of Yonkers Construction Company Pleads Guilty In Manhattan Federal Court To $800,000 Income And Payroll Tax Fraud Tuesday, March 3, 2015 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Preet Bharara, the United States Attorney for the Southern District of New York, and Shantelle P. Kitchen, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation Division (“IRS-CID”), announced today that TARIQ TAHIR, the owner and operator of DNS Construction Corporation, pled guilty today in Manhattan federal court to two counts of tax fraud for failing to pay over $800,000 in income taxes and payroll taxes from 2006 to 2008. TAHIR pled guilty before U.S. District Judge Andrew L. Carter, Jr. Manhattan U.S. Attorney Preet Bharara said: “As a business owner, Tariq Tahir had a responsibility to pay his fair share in taxes. With his guilty plea today, he has acknowledged that he neglected that responsibility and must face the consequences.” IRS-CI Special Agent in Charge Shantelle P. Kitchen said: “Conducting business in cash for the express purpose of evading taxes does not guarantee that you will avoid detection. Business owners who willfully underreport their business receipts and fail to pay over the correct amount of payroll taxes ultimately place additional burdens on law abiding taxpayers. IRS-Criminal Investigation is committed to ensuring that every taxpayer pays his or her fair share.” According to the criminal information, other documents filed in Manhattan federal court, and statements made at related court proceedings: TAHIR owned and operated a Yonkers-based construction company named DNS Construction Corporation (“DNS”). From 2006 through 2008, TAHIR engaged in two tax fraud schemes in order to avoid paying over $800,000 in income taxes and payroll taxes that were due and owing by DNS. To execute the first scheme, TAHIR cashed checks at multiple check-cashing businesses in Manhattan and Brooklyn, rather than depositing those checks into the bank accounts of DNS, so that he could conceal DNS’s true revenues from state and federal tax authorities. To carry out the second scheme, TAHIR paid DNS’s employees primarily in cash so that he would be able to omit these salary payments from DNS’s federal tax returns without detection by tax authorities. By failing to report these payments, TAHIR underpaid the federal payroll taxes due and owing by DNS during this period. TAHIR, 66, of Yonkers, faces a maximum sentence of three years in prison for each of the tax fraud counts, for a total maximum sentence of six years in prison. As part of his plea agreement, TAHIR is also required to pay more than $771,000 in restitution to the IRS and more than $112,000 in restitution to New York State. He is scheduled to be sentenced by Judge Carter on Friday, June 5, 2015, at 10:00 a.m. Mr. Bharara praised the work of the Internal Revenue Service, Criminal Investigation Division. Mr. Bharara also thanked the U.S. Department of Justice’s Tax Division for their assistance in the investigation. This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Jonathan Cohen is in charge of the prosecution. U.S. v. Tariq Tahir Information Updated May 14, 2015 Component USAO - New York, Southern Press Release Number: 15-058