The owner of three collision repair shops omitted nearly $3 million in income and will face a statutory maximum sentence of three years in federal prison
Santa Ana, Calif.—The owner of three Orange County collision repair shops pleaded guilty on Monday to a federal criminal charge for deliberately failing to report nearly $3 million in income to the IRS over a seven-year period, causing a tax loss to the U.S. of almost $1 million.
Chung Ku Sin, 68, of Garden Grove, pleaded guilty to a single-count information charging him with filing a false tax return.
According to his plea agreement, Sin owns and operates three auto repair companies in Orange County: Golden Auto Body, Tops Auto Body, and Victory Auto Body. During the tax years 2015 through 2021, Sin received payments for services from these companies, including in the form of checks. During this period, Sin used a check-cashing business in Garden Grove to cash checks for services performed by those companies.
Sin used the check-cashing business to cash approximately $2,927,265 in checks made payable to his auto repair businesses. Sin withheld from his tax preparer the business receipts and income those companies received in the form of checks. Instead, he only provided to his tax preparer and reported on his tax returns the business receipts and income that he had deposited into his business bank accounts.
He has agreed to pay to the IRS this sum plus penalties and interest. Sin will face a statutory maximum sentence of three years in federal prison.