Story posted Friday, February 5, 2010
U.S. Alleges Local Salon Owner Under-Reported Earnings
United States Attorney Patrick Fitzgerald's office announced federal tax charges against Northfield hair salon owner Teddie Kossof today (Friday) and indicated that Kossof has agreed to plead guilty.
Kossof owns Teddie Kossof Salon and Spa, located at 281 Waukegan Road on the Northfield-Glenview border.
The criminal complaint alleges that from 2002 through 2004, Kossof under-reported his company's corporate earnings by $760,856, under-paying the Internal Revenue Service $114,360.
If convicted Kossof could face a maximum penalty of three years in prison and a $250,000 fine as well as liens for any unpaid taxes, penalties and interest and the cost of the government's prosecution.
Prosecutors allege Kossof would regularly take cash money from daily earnings at the salon before making bank deposits of cash, checks and charges from the day's business.
When preparing the corporation's annual corporate tax returns, prosecutors say Kossof gave his accountants bank statements telling them total bank deposits were equal to the total gross earnings of the business without reporting the cash taken out of those daily earnings before they were deposited in the bank.
A date has not yet been set for Kossof's arraignment.
Kossof did not immediately return calls to the Journal & Topics Newspapers on Friday.
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