World Famous Pizza Joint and Wine Offline destination is shuttered.

[Dan_Hammer]

Pay your taxes. I do, you do, hopefully we all do. No sympathy for the double fisted greed of such businesses. $35 pies and crying broke. Must cost $3-$4 to make that pie. Certainly not reinvesting in the decor. BTW, probably the dirtiest kitchens I have ever seen.

No argument there. I’ll still save you a seat.

[mike_pobega]

lol. thanks

[F.Daner]

I didn’t think they sold by the slice ?

Double 9.4, great review. Most pizza I’ve seen him eat during a review.

El Pres (Barstool Sports & One Bite) had Di Fara’s as his highest rated pizza joint in the country. 9.4 rating. One bite, everybody knows the rules… Cash only, matter of time the IRS came down on them. Hope they bounce back.

Barstool Pizza Review - Di Fara Pizza (Brooklyn) - YouTube

[J_a_y_H_a_c_k]

…she appreciated the kind words…

To the degree that the underpayment of state sales taxes involves the under-reporting of income for not just state but also federal taxation purposes, a federal felony may have occurred.

Tax evasion is a felony.

I.R.C. § 7201 - ATTEMPT TO EVADE OR DEFEAT TAX
Any person who willfully attempts in any manner to evade or defeat any tax
imposed by this title or the payment thereof shall, in addition to other penalties
provided by law, be guilty of a felony and, upon conviction thereof, shall be fined*
not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not
more than 5 years, or both, together with the costs of prosecution.

Victor, if you want to express legal opinions on questions of federalism and the calculation of taxable income, you need to go to law school or at least bean counter school.

[JLee]

To echo some of the prior posts: this place has/had the most overrated food in New York.

[Dan_Hammer]

Just curious JLee, have you been to Di Fara’s?

[Victor_Hong]

To echo some of the prior posts: this place has/had the most overrated food in New York.

Some restaurant reviewers might beg to differ, rating the place and its food with some consistency.

World Famous Di Fara Pizza Shut Down By Health Inspectors

Di Fara Pizza Closed By Health Inspectors

[Rich_Salsano]

Sales tax is a trust fund tax and the state will come down hard on companies and individuals (officers) who willfully evade collection or payment of the taxes over to the state taxing authorities. Fraudulent penalties are likely to be imposed. Jail time (while possible in NY) seems unlikely unless really egregious. I have never seen a sales tax avoidance situation result in anything beyond significant penalties. Will be interesting to see how this plays out.

[JLee]

I’ve been multiple times, the last probably over five years ago.

The place has a good story, because you can go and see the same guy, but that doesn’t make the pizza taste any better, at least to me.

I’ve also seen the reviews, as has nearly anyone who’s been there. Why else would they go all the way out there to wait in line?

[J_a_y_H_a_c_k]

Sales tax is a trust fund tax and the state will come down hard on companies and individuals (officers) who willfully evade collection or payment of the taxes over to the state taxing authorities. Fraudulent penalties are likely to be imposed. Jail time (while possible in NY) seems unlikely unless really egregious. I have never seen a sales tax avoidance situation result in anything beyond significant penalties. Will be interesting to see how this plays out.

Correct. The state views this like stealing. You collect sales tax on behalf of the State and it is the state’s money that you are holding, and if you do not pay it over, they will be really annoyed. I seem to recall a corporate officer going to jail about 25 years ago for it in a case in which we were involved. The NY rule is that if you have the authority to disburse money (you are a signer on a checkbook) or you are a director or senior officer, you are liable even if it is not your responsibility. We got our client out of it in that case because we established that he had no authority to disburse money and had no idea that they were’n’t paying over the trust funds. The big guys who didn’t pay and hid it from other employees ate state food and lived on a cot for a while.

[Dan_Hammer]

I’ve been multiple times, the last probably over five years ago.

The place has a good story, because you can go and see the same guy, but that doesn’t make the pizza taste any better, at least to me.

I’ve also seen the reviews, as has nearly anyone who’s been there. Why else would they go all the way out there to wait in line?

They go out there to wait because the pizza is all it’s cracked up to be. Even some Berserkers that are hard to please confided to me (in 7 offlines), that they liked the pizza. I realize that not everyone likes the pizza there. Oh well. It’s only pizza.

[Victor_Hong]

Sales tax is a trust fund tax and the state will come down hard on companies and individuals (officers) who willfully evade collection or payment of the taxes over to the state taxing authorities. Fraudulent penalties are likely to be imposed. Jail time (while possible in NY) seems unlikely unless really egregious. I have never seen a sales tax avoidance situation result in anything beyond significant penalties. Will be interesting to see how this plays out.

Correct. The state views this like stealing. You collect sales tax on behalf of the State and it is the state’s money that you are holding, and if you do not pay it over, they will be really annoyed. I seem to recall a corporate officer going to jail about 25 years ago for it in a case in which we were involved. The NY rule is that if you have the authority to disburse money (you are a signer on a checkbook) or you are a director or senior officer, you are liable even if it is not your responsibility. We got our client out of it in that case because we established that he had no authority to disburse money and had no idea that they were’n’t paying over the trust funds. The big guys who didn’t pay and hid it from other employees ate state food and lived on a cot for a while.

Would your firm be willing to take this case?

[J_a_y_H_a_c_k]

Sales tax is a trust fund tax and the state will come down hard on companies and individuals (officers) who willfully evade collection or payment of the taxes over to the state taxing authorities. Fraudulent penalties are likely to be imposed. Jail time (while possible in NY) seems unlikely unless really egregious. I have never seen a sales tax avoidance situation result in anything beyond significant penalties. Will be interesting to see how this plays out.

Correct. The state views this like stealing. You collect sales tax on behalf of the State and it is the state’s money that you are holding, and if you do not pay it over, they will be really annoyed. I seem to recall a corporate officer going to jail about 25 years ago for it in a case in which we were involved. The NY rule is that if you have the authority to disburse money (you are a signer on a checkbook) or you are a director or senior officer, you are liable even if it is not your responsibility. We got our client out of it in that case because we established that he had no authority to disburse money and had no idea that they were’n’t paying over the trust funds. The big guys who didn’t pay and hid it from other employees ate state food and lived on a cot for a while.

Would your firm be willing to take this case?

Why not? Everyone is entitled to a defense. We refused to be part of the syndicate that represented Italian insurance companies in the case about refusing to pay on life insurance policies issued to people who were killed in the concentration camps, but that is a far cry from this.