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You are here: Home / News / Long Island Collision Repair Shop Owner Pleads Guilty to $190K Sales Tax Fraud

Long Island Collision Repair Shop Owner Pleads Guilty to $190K Sales Tax Fraud

July 27, 2016 By CollisionWeek Editor

New York’s ongoing crackdown on the underreporting of sales tax nabs another body shop.

Nassau County, New York District Attorney Madeline Singas announced that a Garden City man pleaded guilty July 22 to failing to remit New York State sales tax collected from customers of his collision repair centers with locations in in Mineola and Hempstead, N.Y.

Douglas Donnelly Jr., 51, pleaded guilty to Criminal Tax Fraud in the 5th Degree (an A misdemeanor), while Trinity Auto Body, Inc., pleaded guilty to Criminal Tax Fraud in the 3rd Degree (a D felony) before District Court Judge Erica Prager. The defendant

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Filed Under: News Tagged With: New York State, Sales Tax

Comments

  1. jbyron@pattersonautobody.com says

    July 27, 2016 at 2:22 pm

    Years ago while advocating for collection and submission of sales tax dollars to be handled by insurers when settling claims (Which failed by the way in the final stages) this type of situation was what we were in fact trying to show the state and just how much they are missing out on. Also some 40% of all claims are never repaired so when a insured of claimant takes the money they still owe the state its sales tax as no one is to receive paid sales tax dollars and not forward them to the state right? Well do they track that mess! Good luck if they do, because they cannot.

    • ghepab@aol.com says

      August 3, 2016 at 12:32 am

      On a first party or third party claim the insurer owes the consumer the cost of repairs plus the sales tax on the repair. Or in the case of a total loss they owe the value of the car plus the sales tax. The insured or claimant is not legally obligated to repair the car, or purchase another one. They can take the money and use it anyway they wish. It is only when another sale occurs such as a repair or the purchase of another car that sales taxes is owed. I was against insurance companies forwarding the sales tax to the sales tax department back then and I still am now. If the insurance company forwarded the sales tax to the sales tax department that would be an illegal unconstitutional take of the consumer’s money.

      Hank Hancock, Editor LIABRA NEWS

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