According to documents filed with the court, Warren J. Krotz, 62, of Huntington, New York, owned and operated W. Krotz Enterprises Inc. (WKEI), a professional painting business that provided services throughout Long Island. Krotz admitted to evading both his individual and employment tax liabilities.
From Around 2010 Through 2016, Krotz Cashed Approximately $6 Million In Checks At Various Check-Cashing Facilities.
- These checks were gross receipts of WKEI, but Krotz did not report the amounts on WKEI’s corporate income tax returns.
- He admitted to paying approximately $2 million in wages to employees in cash.
- As a result, Krotz did not withhold and pay over to the Internal Revenue Service (IRS) approximately $300,000 in employment taxes.
Additionally, Krotz admitted to receiving approximately $3 million in income that he did not report on his personal tax returns.
In Total, Krotz Admitted to Causing a Tax Loss to the IRS of Approximately $1 Million.
The Honorable Joseph F. Bianco scheduled sentencing for Sept. 25, 2019. Krotz faces a statutory maximum sentence of 5 years in prison, as well as restitution and monetary penalties.
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