Mystic restaurant owner ordered to pay nearly $100K in restitution and fine for false tax return

The owner of a Mystic restaurant was sentenced Wednesday to probation and ordered to pay restitution for a federal a federal tax offense, according to federal authorities.

Yi Di Lin, also known as “Johnny Lin,” 49, of Mystic, was sentenced by U.S. District Judge Victor A. Bolden in Bridgeport to a total of three years of probation, and was ordered to pay restitution of more than $92,000 and a $5,500 fine, according to federal authorities.

Lin owns and operates Peking Tokyo in Mystic and regularly paid several employees “wholly or partially in cash,” according to federal authorities. Lin began in 2019 “using a payroll processing company to issue payroll checks for certain employees, make appropriate tax withholdings,” and file Employer’s Quarterly Federal Tax Returns with the IRS, federal authorities said in a statement.

“Lin subsequently failed to inform the payroll company about the existence of the employees he only paid in cash and the amount of cash he paid to employees,” the statement said. “As a result, the payroll company prepared and filed false Forms 941 for four quarters in 2019 and 2020, and appropriate payroll taxes were not remitted to the IRS. The resulting loss to the IRS was $92,093.”

Lin pleaded guilty on July 28 to aiding and assisting in the preparation of a false tax return and has paid $92,093 in restitution, federal authorities said.

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