A CPA in New Jersey told a judge on June 30 that he failed to disclose nearly $147,000 of income on his tax returns during a three-year period, authorities said.
William Kawam, 57, of Hewitt, N.J., pleaded guilty last week to charges of subscribing to false tax returns and conspiracy to defraud the United States during a videoconference before U.S. District Judge Madeline Cox Arleo.
According to the U.S. Attorney’s Office for the District of New Jersey, Kawam and an unnamed co-conspirator developed a scheme in 2015 to conceal money from the IRS. Kawam’s partner in crime compensated the CPA for a portion of his accounting services by giving Kawam one of his businesses’ credit cards, which the accountant was allowed to use to pay personal expenses, officials said.
Kawam failed to report the charges as income, and his co-conspirator failed to report the charges as business expenses. Kawam failed to report $146,605 for tax years 2015, 2016, and 2017, resulting in a tax loss of approximately $54,400.
If convicted, Kawam faces a maximum penalty of three years in prison and a $100,000 fine for the count of subscribing to false tax returns, and a maximum penalty of five years in prison and a $250,000 fine for the count of defrauding the United States.
His sentencing is scheduled for Nov. 21, 2022.