Dix Hills Business Owner to Serve 18 Months for $10.8 Million Tax Fraud Scheme

A Dix Hills resident and business owner was sentenced to more than one year in prison for failing to pay the IRS over $1 million in employment taxes, according to the United States Department of Justice.

Eric Anderson used a check cashing service between 2006 and 2008 to cash more than $10.5 million of gross receipt checks paid to his construction companies: Anderson Framing, Anderson Enterprise and Anderson Trim Specialty.

Anderson used this cash to pay his workers “under the table” wages and failed to collect or pay the IRS the employment taxes that were due on his employees’ quarterly cash wages, the Department of Justice reports.

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According to court documents, he used his business’ money for personal use and hid much of his income from the IRS by either filing false corporate and individual federal income tax returns, or by failing to file tax returns. Anderson reportedly failed to pay the IRS over $1 million.

Anderson pleaded guilty to willfully failing to collect and pay over to the IRS employment taxes on June 9, 2014.

More:

• IRS: Dix Hills Man Arrested in $10.5 Million Tax Fraud

He was sentenced Friday to serve 18 months in prison and was ordered to serve three years of supervised release and to pay $1,080,222 in restitution to the IRS. Anderson paid $50,000 towards restitution at his sentencing on Friday.

“Today’s sentence sends a clear message that the Justice Department is aggressively pursuing and holding accountable those who willfully fail to collect and pay employee withholdings, social security and other required federal employment taxes,” Acting Assistant Attorney General Caroline D. Ciraolo said in a statement.