Bilal Salaj, Tax Fraud, New York 2021

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Bilal Salaj, Tax Fraud, New York 2021

A Manhattan construction business operator has admitted to evading taxes and failing to pay over payroll taxes, a federal prosecutor announced today.

Bilal Salaj, 55, of Morganville, New Jersey, pleaded guilty to conspiracy to defraud the IRS, tax evasion, and failure to pay over payroll taxes in Manhattan federal court, according to Acting U.S. Attorney Audrey Strauss and IRS-CI Special Agent-in-Charge Michael Montanez.

Salaj’s scheme, which ran from at least 2014 to 2019, involved cashing business checks worth approximately $3.2 million at Manhattan check-cashing facilities, rather than depositing them into the company’s bank account. He used some of the cash to pay employees and spent the rest on personal expenses, without withholding or paying over payroll taxes to the IRS.

As part of the scheme, Salaj lied to his accountant and caused false tax returns to be filed with the IRS, resulting in a tax loss of approximately $952,778.

Salaj faces a maximum sentence of five years in prison for each of the three charges, which carry a total maximum sentence of 15 years. He has agreed to pay restitution to the IRS in the amount of $952,778.

Sentencing is scheduled for March 3, 2021, at 2:00 p.m., before U.S. District Judge P. Kevin Castel.

Salaj’s crimes were uncovered by the IRS-Criminal Investigation division, which praised the work of its agents in bringing the case to justice.

As he admitted in court, Salaj defrauded the IRS by evading both payroll taxes for his business and personal income taxes. He lied to his own accountant and caused false tax returns to be filed with the IRS.

The case is a reminder that the IRS will vigorously pursue those who attempt to cheat the nation’s tax system, said Montanez.