The owners of five Chicago restaurants are facing federal charges after they allegedly underpaid taxes by manipulating their gross sales receipts.
According to a press release from the office of U.S. Attorney John Lausch, the owners of the restaurants “wilfully avoided paying the full amount of federal taxes” by underreporting their sales.
The owners of Katy’s Dumpling House in Westmont, Sushi City in Downers Grove, Human Spring in Evanston, Cesar’s Tacos on North Clark Street, and Cesar’s on Broadway were charged in the case, and have not yet been formally arraigned.
“These charges send a clear message that restaurant owners who choose to illegally underreport gross receipts will be held accountable,” U.S. Attorney Lausch said. “Recovering funds for the federal treasury is a top priority of our office.”
The Department of Justice has been cracking down on techniques used by restaurants and other establishments to avoid paying taxes, including under-reporting sales and using specialized software, according to a press release.
“This is only the beginning,” Special Agent-in-Charge Gabriel Grchan said. “I want to warn those restaurants, gas stations, convenience stores, and other establishments that are currently using or thinking of using sales suppression software, that we are on to you and your methods. If you steal from the federal government, there will be serious consequences.”