On Tuesday, October 10, 2017, it was announced that a Clayton, California business owner had pleaded guilty to willful failure to account for and pay federal employment taxes. 46-year-old Akbar Dawood Arghandiwal of Clayton pleaded guilty. In doing so, he admitted between 2008 and 2012, he owned restaurants in Clayton, Danville and Lafayette.
He confirmed that between January 2010 and December 2012, he knew he was required to withhold federal employment taxes. Instead, the defendant paid those employees in cash and failed to pay taxes on those wages. Arghandiwal intentionally failed to provide his accountant with complete and accurate information about the wages of his employees in hopes of hiding such wages and paying less in employment taxes.
In total, the defendant failed to pay $90,648 in employment taxes to the IRS. He was ultimately charged by information with 12 counts of willful failure to account for and pay over employment taxes on September 13, 2017. As a part of the plea deal, Arghandiwal has pleaded guilty to a single count. The remaining charges will be dismissed by the court.
The defendant is currently free on bond. He is scheduled to be sentenced on January 16, 2018. He will face a maximum statutory penalty of five years in prison at the sentencing.