September 24, 2023

Tyna Woods

Technology does the job

West Hartford restaurateur admits using ‘Zapper’ application in tax plan

A West Hartford restaurateur who federal authorities said used a personal computer “zapper” method to underreport income pleaded responsible to a tax offense Friday in U.S. District Courtroom.

William Chen, 49, is component owner of restaurants that incorporate 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 reported Chen is responsible for a $2.1 million tax decline to the govt.

Federal prosecutors reported Chen bought and set up a personal computer issue-of-sale technique for the restaurants, but paid an added rate for “zapper” application, which is intended to help a business to underreport sales by deleting transactions.

The prosecutors stated that from 2013 to 2020, Chen and other people at the places to eat made use of the zapper system to lessen gross receipts and sales tax assortment described by the point-of-sale plan, intentionally suppressing taxable cash flow documented in filings with the Inside Income Provider.

Chen also is accused through the very same time period of failing to withhold, account for and spend federal profits taxes, Federal Insurance coverage Contributions Act taxes and federal unemployment taxes for some personnel.

Chen pleaded guilty to two counts of filing a bogus tax return, an offense that carries a most time period of 3 years in prison. He is scheduled to be sentenced on Oct. 21, and is free on individual recognizance.