An Alexandria couple pleaded guilty to conspiracy in relation to filing false tax claims for their Maryland-based auto body repair shop, and have been ordered to pay $2.2 million in restitution.
Ercin Kalender, 60, and Lizette Kalender, 44, own Butch’s Auto Body in Capital Heights, and were ordered to pay the $2.2 million as part of their plea agreement, according to an announcement from the U.S. Department of Justice.
Between 2015 and 2018, the Kalenders kept two sets of books — one set with actual revenues, and another with lower reports of taxable income that were sent to the Internal Revenue Service.
“The corresponding tax loss to the IRS for the four years was $2,219,602,” DOJ said in a release.
The couple, who were trying to sell the shop in 2018, were busted in a sting operation in 2018. An undercover federal agent posed as a potential buyer and both Ercin and Lizette Kalender revealed a longstanding practice of underreporting revenue and income.
“Further, Ercin explained that while Butch’s filed tax returns showed $2.2 million in gross receipts, the actual gross receipts were closer to $3.1, $4.2, and $3.9 million for the fiscal years for 2015, 2016, and 2017; respectively,” according to DOJ. “Ercin also informed the agent that Lizette also reported sizable W-2 income, which helped them evade scrutiny by the IRS… In 2019, after the Kalenders became aware of the IRS’s investigation, Butch’s reported gross receipts of more than $4.5 million, an increase of more than $2.2 million over the fiscal year 2018,”
Additionally, the couple paid a portion of their employees in cash and falsely reported wages to the IRS.
“In a conversation with the undercover agent, Ercin stated that he paid all his employees’ extra compensation in cash to avoid tax obligations except for one secretary who was not paid under the table,” DOJ reported.
The couple go to court for sentencing on May 26 and face a maximum sentence of five years in prison and three years of supervised release.
Recent Stories
This past week saw 33 homes sold in Alexandria. The least expensive condo, single-family home or townhouse sale over the past seven days was $120,000 while the most expensive was…
Alexandria City Public Schools (ACPS) is looking for suggestions from the public on how it should update its Student Code of Conduct. The Student Code of Conduct — an 83-page…
Chadwicks (203 Strand Street) is about to get really busy. From now until mid-August, it’s the strong season for the unpretentious Old Town staple that has graced the Alexandria waterfront…
Potomac Yard’s microbrewery Hops Grill and Brewery didn’t live to see the new Potomac Yard Metro station open, but the Washington Business Journal reported the location at 3625 Richmond Highway…
Are you seeking a confidential space where you can explore your emotions, overcome challenges, and find inner peace? Look no further than our dedicated psychotherapy service! We understand that life can be overwhelming at times, and we’re here to support you every step of the way.
At Peaceful Mind Solutions, our passion lies in helping individuals like you navigate life’s complexities and find the strength to thrive. Our skilled and compassionate therapist is committed to creating a warm, non-judgmental environment where you can express your thoughts and feelings openly. With our personalized approach, we tailor each session to address your unique needs and empower you to overcome obstacles.
Through evidence-based techniques and a deep understanding of the human mind, our therapist will guide you on a transformative journey of self-discovery. Whether you’re dealing with anxiety, depression, relationship issues, or simply seeking personal growth, we’re here to provide guidance and practical tools for lasting change.
Time flies when you’re having fun! The T.C. Williams High School Class of 1973 will hold its 50th reunion July 21-23, 2023 in Alexandria. All graduates and their adult nears and dears are welcome. Events include a Friday evening icebreaker, Saturday dinner dance, and a Sunday brunch. For more information: tcwilliams73.com, 770.789.3534.
Spring Fling at Rising Sol Yoga School
Join us for a day of FREE hot yoga. Experience our class styles and meet our teachers. Buy a bite at the Bake Sale to benefit The Carpenter’s Shelter, peruse some special vendors, take advantage of in-person only discounts on
