{"id":50915,"date":"2022-09-26T19:15:38","date_gmt":"2022-09-27T02:15:38","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=50915"},"modified":"2022-09-26T19:16:13","modified_gmt":"2022-09-27T02:16:13","slug":"construction-firm-owner-admits-failure-to-pay-1-6-million-to-irs","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=50915","title":{"rendered":"Construction Firm Owner Admits Failure to Pay $1.6 Million to IRS"},"content":{"rendered":"

LOS ANGELES\u00a0<\/strong><\/span><\/p>\n

\"\"According to officials, the owner of an Inland Empire business pleaded guilty Monday to filing false tax returns that failed to report more than $4.8 million over five years.<\/span><\/p>\n

This resulted in his failure to pay $1.6 million in taxes due to the IRS.<\/span><\/p>\n

Liang \u201cPaul\u201d Chen, 63, the owner of the Chino-based construction company Mass Development, Inc (MDI), who is identified in court documents as a resident of Los Angeles County, admitted in court Monday that he filed false corporate tax returns for the years 2013 through 2016.<\/span><\/p>\n

Chen plead guilty to one count of aiding and assisting in the preparation of a false income tax return. <\/span><\/p>\n

In a plea agreement filed in federal court, Chen agreed to pay the IRS restitution of $1.6 million.<\/span><\/p>\n

According to his plea agreement, from January 2013 through October 2017, Chen was in charge of MDI\u2019s daily business activities and was listed as the owner of MDI on its financial documents. <\/span><\/p>\n

To conceal income, Chen deposited only a portion of the checks made payable to MDI into the company\u2019s bank account and then cashed nearly $5 million of additional checks made payable to MDI at a bank and a local liquor store check-cashing services.<\/span><\/p>\n

\u00a0Chen provided the tax return preparer with statements from MDI\u2019s business bank account and falsely advised the tax return preparer that all of MDI\u2019s income had been deposited into the business bank account.<\/span><\/p>\n

By failing to tell MDI\u2019s return preparer that he had cashed a substantial portion of business checks made payable to MDI, Chen caused MDI to falsely report its gross receipts to the IRS.<\/span><\/p>\n

This underreporting resulted in an underpayment of federal taxes totaling $1,642,935.<\/span><\/p>\n

Chen is scheduled to be sentenced on Dec. 12. He is facing up to three years in federal prison.<\/span><\/p>\n

IRS Criminal Investigation investigated this matter.<\/span><\/p>\n

Assistant U.S. Attorney Steven M. Arkow of the Major Frauds Section is prosecuting this c<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

LOS ANGELES\u00a0 According to officials, the owner of an Inland Empire business pleaded guilty Monday to filing false tax returns that failed to report more than $4.8 million over five years. 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