http://www.wral.com/wake-pizzeria-owners-cut-feds-out-of-tax-pie/13816144/

I think this is the owners of the one on Hillsborough, but it doesnt say.

7/16/2014 11:12:57 AM

Quote :

"RALEIGH, N.C. — A father and son who own Wake County pizzerias pleaded guilty Tuesday to filing false tax returns, authorities said. Federal investigators said Thair Alwan and his son, Saill Fadhil, skimmed about $1.3 million in profits from their I Love NY Pizza shops in 2008 and 2009 and filed tax returns for the businesses that under-reported the actual income, resulting in "substantial tax underpayments." According to court documents and statements made in court, I Love NY Pizza had two shops in Raleigh and one store location in Knightdale by 2008, and an Apex shop was added in 2009. Although employees stated that the business was at least 40 percent cash sales, cash deposits into the corporate bank account, as a percentage of total deposits, were 1.3 percent in 2008 and 2.3 percent in 2009, authorities said. The skimmed money was used for personal expenditures or deposited into Alwan's or Fadhil's personal bank accounts, authorities said. Investigators said that, between 2007 and 2010, Alwan made 73 currency deposits into his personal accounts. Of those, 50 were at least $9,000, and the majority of these were in the amount of $9,980. None of the deposits was more than $10,000, a level at which banks file a report with the Internal Revenue Service. The father and son have agreed to pay restitution to the IRS. When they are sentenced, they face up to three years in prison and a $250,000 fine. Read more at http://www.wral.com/wake-pizzeria-owners-cut-feds-out-of-tax-pie/13816144/#8OO7tLgJXDzOBQe2.99"

$9980

7/16/2014 11:27:52 AM

wasn't one of their daughters a user on here briefly?

[Edited on July 16, 2014 at 11:29 AM. Reason : someone that cares more than me investigate]

7/16/2014 11:29:36 AM

Yeah, that's the one on Hillsborough. The son, Saill, lived in my dorm freshman year at NCSU...Alexander. I remember his dad owned the I ♥ NY Pizza on Hillsborough that he worked at.

Cool guy, from what I remember.

7/16/2014 11:30:13 AM

and to think he used to bitch at me for ordering a water and filling it with sprite

7/16/2014 11:30:54 AM

Good that place was shit

Sylvia's 4 lyfe (RIP)

7/16/2014 12:29:04 PM

So a little over 200 3$ specials a day

7/16/2014 12:32:58 PM

they were skimming almost 40% of their sales and still turning a profit. I'm in the wrong industry.

7/16/2014 12:48:52 PM

Same family own West Park Tavern in Apex?

7/16/2014 12:51:53 PM

Quote :

"and to think he used to bitch at me for ordering a water and filling it with sprite "

I saw him rage the fuck out at some kids for doing this during a hike night.

7/16/2014 12:52:49 PM

they deserved it, drinking non-beer on hike night is a bitch move

also, does any restaurant not skim profits and pad books? i've heard some large ones in Raleigh even being as blatant as paying half-check and half-cash.

[Edited on July 16, 2014 at 12:58 PM. Reason : .]

7/16/2014 12:57:56 PM

Quote :

"also, does any restaurant cash business not skim profits and pad books? "

the key is that if you're taking advantage of the lack of paper trail with cash to avoid being caught avoiding taxes, don't fuck up and introduce a paper trail by involving banks.

7/16/2014 1:26:35 PM

^ For sure

Let's say we're talking around $40k-$50k per month in cash that you want to keep out of the banks...how would you all go about using that much cash (not saving it). [/hypothetical question]

7/16/2014 1:44:00 PM

Sylvia's was awesome!

7/16/2014 1:49:04 PM

That's Amore had far better pizza.

Yeah they didn't have some nice old man you could chit chat with, but the product was far better...as was the atmosphere/facilities.

7/16/2014 1:57:12 PM

^^^cocaine

7/16/2014 2:01:27 PM

I $ NY PIZZA

7/16/2014 3:00:02 PM

I was totally crushing on one of his daughters during undergrad

7/16/2014 3:24:01 PM

Quote :

"nice old man"

I'm not sure if we went to the same I <3 NY Pizza.
They guy I remember working there was a dick.

7/16/2014 5:12:12 PM

Quote :

"I'm not sure if we went to the same I <3 NY Pizza. They guy I remember working there was a dick."

Sylvia's had the nice old man. The pizza tasted like cardboard though.

7/16/2014 5:16:02 PM

Quote :

"Sylvia's 4 lyfe (RIP)"

RIP

^ Sylvia's was far, far better than I<3 NY

[Edited on July 16, 2014 at 5:17 PM. Reason : ]

7/16/2014 5:16:50 PM

^^ Oh, ok. I only went to Sylvia's a few times because the pizza was so meh. I heard from people after finishing college that the guy was really nice. Too bad he had to close it down.

7/16/2014 5:17:46 PM

They should have called Alix Tichelman to help them dispose of the cash.

7/16/2014 5:19:04 PM

$1.3 million in profit in 2 years from selling pizza...seriously, what in the actual fuck

7/16/2014 8:15:22 PM

Someone needs to start posting pictures in this thread of the man and his daughter yall think is soooooo hawt.

7/16/2014 8:20:49 PM

It is a lot easier to make a huge profit for your business if you don't pay any taxes.

7/16/2014 8:20:58 PM

Quote :

"Sylvia's 4 lyfe (RIP)"

I've only actually been back to Raleigh a few times since it's been gone, so I can't say the closing has affected me personally. But damn it was still sad. I ate there at least once a week. Loved that place.

And yeah the guy was nice unless 1) you were parked there and didn't eat there, I've watched about 5 arguments with people who he had towed. and 2) you dab the grease off of your pizza with a napkin.

[Edited on July 16, 2014 at 8:29 PM. Reason : But yeah I really liked that guy]

7/16/2014 8:27:27 PM

wait he didn't like if you dabbed the grease w/ a napkin?

7/16/2014 10:16:41 PM

nah I saw him bitch at a chick for that one time. Most pizza places brush a little extra olive oil onto the pizza after it's done cooking anyway so I guess it offends people who are proud of their pizza.

It's like going to a sushi place and dunking your sushi into the slurry of soy sauce and wasabi that everyone always makes.

[Edited on July 16, 2014 at 10:46 PM. Reason : not that I haven't done that from time to time]

7/16/2014 10:45:51 PM

Not saying that a lot of restaurants don't fail...but 90% of those places are doomed from the get-go....bad concept, bad location, shitty food, owners with no experience, etc. Its not that difficult to make good money in the food and beverage industry.

7/16/2014 11:02:38 PM

its not that difficult, 10% are successful c'mon.

7/16/2014 11:04:11 PM

What kind of dumbass deposits the cash in the bank?

7/16/2014 11:23:01 PM

Most human beings are idiots, therefore it stands to reason that most restaurant owners are idiots who don't know what they're doing.

7/17/2014 12:10:21 AM

Quote :

"its not that difficult, 10% are successful c'mon. "

It's not that difficult if you're not an idiot who's never worked in a restaurant before. I think restaurant's have the biggest percentage of people who try to start restaurants who have no experience in the industry.

It would be like a bartender opening up an accounting firm.

7/17/2014 7:16:11 AM

Quote :

"the key is that if you're taking advantage of the lack of paper trail with cash to avoid being caught avoiding taxes, don't fuck up and introduce a paper trail by involving banks."

The paper trail from the bank is just extra proof in this case. This has got to be one of the most common tax avoidance methods and there's no way anyone in the IRS is dumb enough to believe a place that sells pizza by the slice only gets 1.3% of their sales from cash. Even if this guy were stuffing the money in a safe he was bound to get caught at his first audit. I bet he thought he was really slick too, lol. Let this be a warning to the small business owners out there.

7/17/2014 4:39:48 PM

Quote :

" It's not that difficult if you're not an idiot who's never worked in a restaurant before."

Somebody's been watching too much Kitchen Nightmares. There's a lot more to running restaurants successfully that people don't realize. It's not just good customer service and good food (although those are the main two ingredients).

7/17/2014 5:41:25 PM

Quote :

"there's no way anyone in the IRS is dumb enough to believe a place that sells pizza by the slice only gets 1.3% of their sales from cash"

7/17/2014 7:13:26 PM

^^^Yes! Making deposits like that is very common, and people usually do not get caught. You just gotta keep it under 10 grand. So, yeah, that part of the plan wasn't stupid...it's standard behavior.

[Edited on July 17, 2014 at 7:29 PM. Reason : Better.]

7/17/2014 7:24:01 PM

Quote :

"Somebody's been watching too much Kitchen Nightmares. "

80% of my clients are restaurants, I'm a partner in a restaurant, and I've worked in the industry for for 10+ years. It's not easy...but it's not rocket science either. The failures are exaggerated by the people with no experience in the industry trying to break in. That's pretty much impossible. But if you have decent intelligence, good experience, and common sense...you've got a good chance to make some good money.

7/17/2014 10:18:29 PM

Quote :

"You just gotta keep it under 10 grand."

From what I've read, having a pattern of "hey guys, I've got exactly $9999 to deposit" can actually draw more scrutiny from the Feds.

But seriously, all the money they skimmed, they were killing it. I had no idea that guy was so successful. Should've just taken the tax hit.

[Edited on July 17, 2014 at 11:07 PM. Reason : ...]

7/17/2014 11:06:07 PM

Quote :

"But seriously, all the money they skimmed, they were killing it. I had no idea that guy was so successful. Should've just taken the tax hit."

7/17/2014 11:14:07 PM

Quote :

"Same family own West Park Tavern in Apex?"

That place has gone to shit since it first opened.

7/17/2014 11:19:44 PM

Quote :

"his daughter yall think is soooooo hawt."

If it's the one I'm thinking of back when I was in school, she was decent. I would've given it to her. Not a stunner but decent enough. You could tell she was gonna look like a troll when she got older though.

7/17/2014 11:21:21 PM

Quote :

"But if you have decent intelligence, good experience, and common sense...you've got a good chance to make some good money"

yeah, zacktm is killing it with his various bars/restaurants in raleigh.

Quote :

"Let's say we're talking around $40k-$50k per month in cash that you want to keep out of the banks...how would you all go about using that much cash (not saving it). [/hypothetical question] "

haha, man this is the kind of thing I randomly daydream about.. like if I "found" a bag that had a million bucks in cash or something. Legally, i'm supposed to declare shit like that and pay taxes. fuck that noise.

I'd pay for all of the day to day stuff that I currently use a debit/credit card for with cash-- gas, groceries, clothes, all of the shit i buy at lowes/HD, etc.

I'd probably get a lot of work done to my house, and pay all the contractors in cash, they tend to be really happy about getting cash payments for the same reasons a pizza restaurant would.

In the meantime, my normal, legit income can be almost fully saved and invested.

In your scenario, however, where the monthly cash exceeds my income several times over, i'd have a hard time spending it all without putting up red flags. I'd probably hoard the excess in a banana stand until it got to be too much to stash there. At that point I better call Saul.

[Edited on July 18, 2014 at 8:31 AM. Reason : .]

7/18/2014 8:30:04 AM

there's money in the banana stand

7/18/2014 8:32:49 AM

I'd put J's on my feet.

7/18/2014 9:48:11 AM

If you had 50k in cash you would only have to spend $137 a day to get rid of it in a year.

7/18/2014 9:50:56 AM

and less than $1700 per day to spend that 50k in a month.

7/18/2014 9:54:10 AM

I would start a pizza shop to launder the money. See, what I'd do is claim to have sold more pizzas than I actually sold. People would think "wow, that pizza shop is always empty, but it sure does look successful on the books!"

7/18/2014 10:51:29 AM

set em up

7/18/2014 11:04:26 AM