NEWARK – Michael Arizechi, the owner of an East Orange tax preparation business, pleaded guilty Monday to income tax evasion.
Arizechi, a resident of Union, entered his plea in federal court in Newark before Judge Dennis Cavanaugh. Arizechi pleaded guilty to one count of income tax evasion for failing to properly report all his income for the 2003 tax year. Cavanaugh scheduled sentencing for June 7.
“As we enter the 2010 tax filing season, today’s plea is a reminder that IRS-Criminal Investigation is serious now and throughout the year in enforcing the laws directed at those who attempt to defraud our nation’s tax system,” said William P. Offord, Special Agent in Charge, IRS, Criminal Investigation, Newark Field Office. “Those Americans who file accurate, honest and timely returns can be assured that the government will hold accountable those who don’t.”
According to court documents, Arizechi, a CPA, owned a tax preparation business in East Orange known as Michael Arizechi CPA & Associates. Arizechi prepared and filed tax returns with the Internal Revenue Service (IRS) on behalf of his clients. As a sole proprietorship, Arizechi was required to report all gross receipts generated by his tax preparation business on Schedule C of his personal income tax return.
Arizechi failed to report approximately $143,418 in gross receipts that he received from his tax preparation business for the 2003 tax year. This resulted in an additional tax liability of approximately $54,800. Arizechi also admitted that he failed to report gross receipts of approximately $80,836 in 2002 and $ 126,133 in 2004. This resulted in an additional tax loss for the years 2002 and 2004 of approximately $70,041.
The charge of income tax evasion carries a statutory maximum prison sentence of five years and a statutory maximum fine of $250,000.
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