Owner of Long Island diner pleads guilty to not paying employment tax

 

Date: September 16, 2020

Contact: newsroom@ci.irs.gov

A diner owner pleaded guilty today to failing to pay employment taxes.

According to court documents and statements made in court, Nikolaos Avgoustidis, the owner and operator of the Rocky Point Town House Diner, did not pay employment taxes for all of the diner's employees. From 2011 to 2013, Avgoustidis paid certain employees in cash, without reporting it to the IRS, and further, without paying the social security and Medicare taxes that must be withheld from the employees' wages. In total, Avgoustidis caused a tax loss to the IRS of approximately $130,000.

U.S. District Judge Gary R. Brown scheduled the sentencing for Jan. 15, 2021. At sentencing, Avgoustidis faces a maximum sentence of 5 years. He also faces a period of supervised release, restitution, and monetary penalties.

Special agents of IRS-Criminal Investigation conducted the investigation and Trial Attorneys Sean Green and Mark Kotila of the Tax Division are prosecuting the case.