Marlboro man admits to cheating IRS out of $239K in taxes
The co-owner of a collision repair business admitted in federal court Monday to evading over $239,000 in payroll taxes.
Omar Mostafa, 57, of the Morganville section of Marlboro, pleaded guilty before U.S. District Judge Georgette Castner to a charge of willfully failing to collect or pay taxes.
From 2016 through 2018, Mostafa, the co-owner of the collision repair shop and two other unidentified companies in New Jersey and New York, was responsible for filing the companies’ tax returns with the IRS. He co-owned the companies with an unnamed relative.
According to court documents, Mostafa failed to report approximately $1,562,834.38 in payroll for the collision repair business alone, leading to $239,116 in unpaid taxes − the accusation he pleaded guilty to.
But the U.S. Attorney’s Office said the IRS’s tax loss from Mostafa’s underreporting for all three businesses was about $1.4 million, which Mostafa must repay.
The charge he pleaded guilty to carries a maximum penalty of five years in prison and a fine of up to $10,000.
His sentencing is scheduled for Dec. 12.
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Ken Serrano covers crime, breaking news, local issues and investigations. Reach him at 732-643-4029 or at kserrano@gannettnj.com.
This article originally appeared on Asbury Park Press: Marlboro NJ man admits to evading $239K in taxes
