Kfir Baroan, a business owner from Fair Lawn, New Jersey, admitted on April 23 to evading more than $230,000 in income and payroll taxes between 2018 and 2021, according to U.S. Attorney Robert Frazer.
Baroan pleaded guilty before U.S. District Judge Michael E. Farbiarz to charges of tax evasion and willful failure to pay over payroll taxes related to his auto body shop in Bergen County. Prosecutors said Baroan failed to file income tax returns during the period in question and did not pay any income taxes. He cashed over $1.5 million in business receipt checks at check-cashing facilities and used accounts linked with other businesses for deposits and withdrawals for both personal and business expenses.
Authorities also said Baroan paid employees in cash without reporting their wages or withholding required payroll taxes. In total, he was found to have evaded more than $233,000 in federal taxes during the four-year period.
The charge of income tax evasion carries a maximum penalty of five years in prison and a fine up to $250,000 or twice the gross gain or loss from the offense; the same penalties apply for willful failure to pay over payroll taxes. Sentencing is scheduled for September 2.
U.S. Attorney Frazer credited special agents of IRS – Criminal Investigation under Special Agent in Charge Jennifer L. Piovesan with leading the investigation that resulted in Baroan's guilty plea.
The U.S. Attorney's Office for the District of New Jersey prosecutes federal crimes and represents the United States in civil matters across the state according to its official website. The office advances community safety through law enforcement coordination and crime prevention programs according to its official website.
The office has locations in Newark, Trenton, and Camden according to its official website, employs about 170 attorneys and support staff statewide according to its official website, handles federal prosecutions including terrorism and public corruption cases while coordinating with other agencies according to its official website, is part of the U.S. Department of Justice according to its official website, traces its establishment back to 1789 according to its official website, and counts among its alumni several federal judges as well as U.S senators according to its official website.
