TRENTON – A Monmouth County business owner admitted to tax evasion according to Acting U.S. Attorney Rachael A. Honig.
Peter Alvarez, 54, Atlantic Highlands, who owns a construction and demolition business pleaded guilty to one count each of employment tax evasion and personal income tax evasion.
According to documents filed in this case and statements made in court from 2011 to 2016, Alvarez owned and operated Mr. Demo, a construction and demolition business in Leonardo. He was required to report to the IRS federal withholding taxes and FICA taxes for all of Mr. Demo’s employees and to pay those taxes on a quarterly basis.
Alvarez cashed numerous checks issued by Mr. Demo’s clients and used the resulting cash, in part, to pay Mr. Demo’s employees’ wages. By using cash to pay those employees, he concealed from the IRS his payment of employees’ wages and his failure to report, account for, and pay employment taxes of a total of $177,649.
The first count referred to his evasion of employment taxes that came to $23,618 for the first quarter of 2016. From August. 1, 2012, to October 23, 2017, Alvarez filed individual federal tax returns for the calendar years 2011 to 2016 in which he falsely and substantially understated Mr. Demo’s total gross receipts by not reporting the numerous checks issued by his clients that he cashed.
During those years Alvarez owed additional income tax of $432,019 on Mr. Demo’s unreported gross receipts less allowable payroll expenses. Count 2 of the information to which Alvarez pleaded guilty referred to Alvarez’s evasion of personal income tax of $89,190 for calendar year 2013.
As part of his plea agreement, Alvarez agreed to make full restitution to the IRS of $609,668. Each charge of tax evasion carries a maximum potential penalty of five years in prison and a maximum $250,000 fine. Sentencing of the defendant is scheduled for October 28.
