The IRS Tells Restaurant Owners “Check Please!”
A couple who own three restaurants in Texas were indicted on federal tax crimes ranging from conspiring to defraud the United States, filing false individual tax returns and filing false corporate returns.
Michael and Cynthia Herman of Austin, TX, owned restaurants Cindy’s Gone Hog Wild, Cindy’s Downtown, and Hasler Brothers Steakhouse. The Herman’s are charged with filing false individual income tax returns for 2010 through 2012, and Michael Herman was also charged with filing false corporate tax returns through those same years.
No dollar figures were given in the indictment, but it alleges that the Herman’s only deposited a portion of the restaurant’s cash receipts and gave those figures to their accountant to prepare their returns. It also alleges that the couple claimed business expenses that were really personal expenses.
If convicted, the Hermans face up to five years in prison on conspiracy charges, three years in prison for each false return, and paying restitution and monetary penalties.
About the Author
Gregory McCauley Jr., Esq.
Tax Attorney · Villanova University School of Law · Admitted in Delaware, New Jersey, United States Tax Court
Gregory McCauley Jr. is an experienced tax attorney who has personally represented more than 1,000 clients in matters ranging from civil tax controversy and IRS examinations to criminal tax defense, U.S. Tax Court litigation, and complex business disputes. His practice is built on a foundation his c...
