Woodinville Auto Repair Firm Pleads Guilty to Filing False Tax Return

SEATTLE, Oct. 6, 2010 – A Woodinville sports car repair shop has pled guilty to filing a false tax return in connection with failing to report nearly $187,000 in sales tax it collected from customers.

Woodinville Sports Car, Inc. was charged as a corporation by the Financial Crimes Unit of the Attorney General’s Office at the request of the Washington State Department of Revenue.

King County Superior Court Judge Michael Heavey ordered the company to pay $600 in court costs in addition to $264,753 in restitution the company already has made.  The restitution included the unpaid taxes plus penalties and interest.

According to the charging papers, the business reported less than 40 percent of its taxable business between 2004 and 2009 and diverted sales tax to pay bills. The underreporting was uncovered through a Department of Revenue audit.

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KimS@dor.wa.gov

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