Shop Owners Plead Guilty to More than $2M of Tax Fraud
Feb. 8, 2022—Owners of a Maryland shop have pleaded guilty to conspiracy in relation to corporate tax fraud, according to a federal press release.
Ercin and Lizette Kalendar, owners of Butch’s, a body shop in Capital Heights, Marlyan, have been ordered to pay $2,219,602 in restitution.
A federal investigation found the Kalenders kept two sets of financial records for Butch’s, one that reported the actual revenues and profits of the business and a second set that reported lower figures which were used for tax purposes. The Kalenders’ conspiracy to submit false tax returns also involved cashing checks, received at Butch’s at a Prince George’s check cashing facility. The checks cashed were not reported on Butch’s tax returns and resulted in the underreporting of Butch’s annual income for fiscal years 2015, 2016, 2017, and 2018 by more than $6.6 million. The corresponding tax loss to the IRS for the four years was $2,219,602.