NEWARK – A Union resident was sentenced to one year and one day in prison for tax evasion on Wednesday by a federal district court judge.
U.S. District Court Judge Dennis Cavanaugh also sentenced Michael Arizechi to three years of supervised release after he serves his prison term and a fine of $3,000.
Arizechi, the owner of an East Orange tax preparation business, pleaded guilty to one count of income tax evasion for failing to properly report all his income for the 2003 tax year before Cavanaugh on Feb. 8.
“Those Americans who file accurate, honest and timely returns can be assured that the government will hold accountable those who don’t,” said William P. Offord, Special Agent in Charge, IRS, Criminal Investigation, Newark Field Office.
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.
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