New York State Department of Taxation and Finance Acting Commissioner Jamie Woodward announced today that Damon W. Adams, owner of Northway Service Center, Inc, an auto repair business located at 239 Third St., pled guilty to failing to remit state and local sales taxes collected from his customers during the summer of 2009.
Adams, 38, of 60 Columbus Ave., Waterford, pled guilty February 16 before Albany City Court Judge Thomas Keefe to one count of Criminal Tax Fraud in the Fifth Degree, a class A misdemeanor.
Adams admitted to stealing sales tax collected from his customers that he never turned over to the state. Conditions of the plea include restitution of $31,502 to the New York State Department of Taxation and Finance due at the time of sentencing and three years probation. Adams is scheduled for sentencing on April 13, 2010.
Acting Commissioner Woodward said, “Tax Fraud is a serious crime that hurts all New York State residents. Our Department will continue to work tirelessly with prosecutors such as Albany County District Attorney P. David Soares to make sure tax cheats who defraud government and short-change their neighbors pay a stiff penalty.”
Acting Commissioner Woodward added: “The Department offers programs such as the Voluntary Disclosure and Compliance Program to encourage delinquent taxpayers to become compliant without facing criminal prosecution or civil penalty. It is hoped that this arrest will encourage such taxpayers to come forward and satisfy their tax obligation. For more information about these programs, go to the Department’s website at www.tax.ny.gov.”
The investigation was conducted by staff from the Tax Department’s Special Investigations Unit in the Capital Region.