Owners of a popular River Grove, Illinois Italian restaurant were recently charged with tax evasion after not reporting hundreds of thousands in cash receipts.
According to a report in the Chicago Tribune, the father and son owners of Da Luciano Pizza and Pasta allegedly reported $897,000 in gross receipts in 2012 when the receipts were substantially higher. The scheme had the family allegedly hiding cash receipts from the restaurant, which opened in 2003.
The owners were each charged with one felony count of tax fraud, court records show. The charges allege that in addition to the missing receipts from 2012, nearly all cash receipts from 2010 to 2013 were kept hidden from the Internal Revenue Service. The restaurant owners have cooperated with prosecutors and are expected to resolve the case without a trial, according to the Tribune.
If you are the owner of a business, it is essential to report any and all income from your business to the IRS and requisite state agency. Hiding cash receipts will catch up to you in the long run, as the IRS keeps detailed records of past income. Auditors will eventually notice that you are claiming less than you had in previous years.