Everett Man Pleads Guilty to Selling Tax Zapper Software

John Yin, 66, of Everett, Washington, pleaded guilty today to wire fraud and conspiracy to defraud the government after admitting he sold ‘Tax Zapper’ software designed to cheat state and federal tax systems. The software, marketed as an add-on to point-of-sale (POS) systems, enabled restaurants to erase cash transactions from their records and drastically underreport income, leading to a tax loss exceeding $3.4 million.

Yin, a salesman for Canadian-based Profitek, promoted and distributed the revenue suppression software (RSS) across North America, targeting businesses in the hospitality and retail sectors. The software only functioned with Profitek’s POS systems and allowed users to delete select sales data, then reconcile their books to reflect a falsified, lower revenue. The altered records appeared legitimate but were fraudulent, undermining both tax compliance and fair market competition.

Between 2010 and 2013, eight Seattle-area restaurants used the software to slash their tax obligations, underpaying by amounts ranging from $145,000 to over $910,000. One restaurant owner, confronted about evading more than $900,000 in taxes, admitted she used the hidden cash to pay employees off the books—without withholding mandatory social security or Medicare taxes, further victimizing her own workers.

U.S. Attorney Annette L. Hayes slammed the scheme as a targeted attack on the integrity of the tax system. ‘This defendant sold businesses a high tech tool that had only one purpose – to give businesses a leg up by cheating the taxman,’ Hayes said. ‘They didn’t just dodge taxes—they cheated state and federal programs and harmed honest workers.’

Washington State Attorney General Bob Ferguson echoed the sentiment, calling the software a direct threat to law-abiding businesses. ‘Using illegal software to avoid tax obligations harms both taxpayers and businesses that compete fairly and play by the rules,’ Ferguson said, noting his office is pursuing a separate criminal case against a Bellevue restauranteur accused of pocketing nearly $400,000 in state sales taxes using similar tools.

IRS Criminal Investigation’s Special Agent in Charge Darrell Waldon emphasized that revenue suppression software is just the digital evolution of cash skimming. ‘These so-called Zapper programs have caught the eye of diligent IRS Special Agents and our law enforcement partners,’ Waldon said. ‘Together we will continue to prosecute those who threaten the integrity and equity of our nation’s tax system.’

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