West Hartford restaurateur admits using ‘Zapper’ software in tax scheme

A West Hartford restaurateur who federal authorities explained used a pc “zapper” plan to underreport income pleaded guilty to a tax offense Friday in U.S. District Courtroom.

William Chen, 49, is component owner of dining establishments that involve Ginza Japanese Cafe in Bloomfield, Ginza Japanese Delicacies in Wethersfield, Kaliubon Ramen in Wethersfield and West Hartford, and Feng Asian Bistro in Hartford and Canton, and Millbury, Massachusetts. The U.S. Attorney’s workplace said Chen is liable for a $2.1 million tax decline to the authorities.

Federal prosecutors stated Chen bought and put in a laptop issue-of-sale procedure for the eating places, but compensated an further payment for “zapper” software package, which is built to permit a business to underreport product sales by deleting transactions.

The prosecutors explained that from 2013 to 2020, Chen and many others at the dining establishments utilised the zapper method to lessen gross receipts and income tax selection claimed by the position-of-sale method, intentionally suppressing taxable cash flow documented in filings with the Inner Income Services.

Chen also is accused through the very same interval of failing to withhold, account for and pay out federal money taxes, Federal Insurance policies Contributions Act taxes and federal unemployment taxes for some workers.

Chen pleaded responsible to two counts of filing a untrue tax return, an offense that carries a greatest term of three a long time in prison. He is scheduled to be sentenced on Oct. 21, and is free on personal recognizance.