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Tuesday, 22 September 2020 20:17

Worcester, MA, Auto Shop Owner Pleads Guilty to Tax Fraud

Written by Brian Lee, Telegram & Gazette

The owner of Worcester and Everett, MA, auto body shops pleaded guilty Sept. 21 to a payroll tax scheme resulting in a tax loss to the IRS of more than $290,000.

Adam Haddad, 43, of Shrewsbury, MA, pleaded guilty to three counts of aiding the preparation of false tax returns before U.S. District Court Judge Timothy S. Hillman, who scheduled sentencing for Jan. 13. Haddad was charged in August.

 

For tax quarters ending in March 2015 through June 2017, Haddad paid a significant portion of the wages to employees of his company, Accurate Collision, under the table, federal prosecutors alleged.

 

In doing so, Haddad caused Accurate Collision to file returns with the IRS which under-reported the actual wages he had paid his employees as well as the employment taxes due to the IRS.

 

In total, Haddad caused a loss to the IRS of at least $292,231, the IRS said.

 

We thank the Telegram & Gazette for reprint permission. 

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