Not reporting online sales has landed a Brooklyn, New York, business owner in a heap of trouble. Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division has announced that more than $650,000 in income from online sales went unreported.
According to court documents and information presented in court, Michael Stern, 48, was the founder and operator of Prestige Optical, a retailer of sunglasses and eyeglasses. For the 2006 and 2007 tax years, Stern filed false federal tax returns with the Internal Revenue Service (IRS) on which he failed to report approximately $656,780 of income from online retail sales.
He has pleaded guilty to two counts of filing false tax returns. Sentencing is set for Sept. 9. Stern faces a statutory maximum sentence of three years in prison and a fine of $250,000 for each count of filing a false tax return. As part of his plea agreement, Stern also agreed to pay restitution to the IRS in the amount of $190,781.
If you are facing a similar situation with back taxes, delinquent payroll taxes or past false federal tax returns, contact our tax attorneys for help. We have offices in Cleveland and Chicago and represent clients in approximately 45 states and 15 countries.