West Hartford restaurateur admits using ‘Zapper’ software in tax scheme

A West Hartford restaurateur who federal authorities explained applied a pc “zapper” application to underreport profits pleaded responsible to a tax offense Friday in U.S. District Court docket.

William Chen, 49, is component owner of dining establishments that contain Ginza Japanese Cafe in Bloomfield, Ginza Japanese Delicacies in Wethersfield, Kaliubon Ramen in Wethersfield and West Hartford, and Feng Asian Bistro in Hartford and Canton, and Millbury, Massachusetts. The U.S. Attorney’s office environment claimed Chen is accountable for a $2.1 million tax reduction to the federal government.

Federal prosecutors explained Chen acquired and put in a pc position-of-sale process for the places to eat, but compensated an extra payment for “zapper” program, which is built to permit a enterprise to underreport product sales by deleting transactions.

The prosecutors explained that from 2013 to 2020, Chen and other people at the restaurants made use of the zapper plan to reduce gross receipts and revenue tax assortment claimed by the stage-of-sale program, deliberately suppressing taxable earnings documented in filings with the Interior Earnings Provider.

Chen also is accused during the identical period of time of failing to withhold, account for and pay federal revenue taxes, Federal Insurance coverage Contributions Act taxes and federal unemployment taxes for some workers.

Chen pleaded guilty to two counts of submitting a untrue tax return, an offense that carries a highest term of three many years in prison. He is scheduled to be sentenced on Oct. 21, and is cost-free on personalized recognizance.