Archive for the ‘Las Vegas’ Category

Varagiannis Gets 15 Months for Tax Evasion

Tuesday, January 6th, 2015

Manny Varagiannis received 15 months at ClubFed for tax evasion. Mr. Varagiannis was arrested back in 2012 on a count of structuring, but pleaded guilty in April to not paying $230,651 in taxes. He must also make restitution.

The charges relate to Midnight Entertainers, an escort service here in Las Vegas. Mr. Varagiannis supposedly sold the business, but back from 2009 – 2011 he didn’t report all of his income from it…and got caught.

According to the Las Vegas Review Journal,
the US Attorney and the Las Vegas police believe that Mr. Varagiannis is offering kickbacks to cab drivers and others. It was also alleged that Mr. Varagiannis remains the real owner of Midnight, Inc. (the legal name of Midnight Entertainers) and the current owners are just fronting him. It’s definitely possible that Mr. Varagiannis may face more charges over these allegations.

In any case, Mr. Varagiannis will be reporting to ClubFed in April.

Cash & Carry

Wednesday, September 10th, 2014

Myong Ho Pak is the owner of Yama Sushi restaurant here in Las Vegas. The restaurant is popular and has done quite well; it features all you can eat sushi. It may have done a bit worse on its 2008 to 2010 tax returns than it really did, though. You see, the owner only included his credit card receipts on his tax return.

It turns out that Mr. Pak’s accountant received his business bank statements but the cash from the business went directly into his personal bank accountant. It’s a good scheme when it works. Unfortunately for Mr. Pak, the IRS discovered the evasion.

Mr. Pak pleaded guilty on Monday to tax evasion, and has agreed to make full restitution to the IRS of $244,045. He’ll be sentenced in December.

It’s a Ten-Digit World (Especially in Las Vegas)

Saturday, April 26th, 2014

This post has nothing to do about taxes, but everything to do with phone numbers in Las Vegas. Beginning one week from today, the 702 area code (which covers Clark County, Nevada–primarily the Las Vegas metropolitan area) will be “overlayed” with the 725 area code. That means if you dial a phone number in Las Vegas you must dial ten digits (e.g. 702-555-1212 must all be dialed). Beginning in one month, new phone numbers will be assigned with the 725 area code.

The Nevada Public Utilities Commission has a fact sheet available on the new area code.

The Las Vegas Culinary Union Should Look at a Calendar Before Calling EAs in March

Thursday, March 6th, 2014

The Las Vegas Culinary Union (formally, Local 226 of the Culinary Union) doesn’t like non-union casinos here in Las Vegas. One such casino is the Cosmopolitan Hotel. It’s one of the newest of Las Vegas’s mega-resorts, and it’s a beautiful facility. Last year I attended the National Association of Enrolled Agent’s national conference in August at the Cosmo (I was taking the third and final year of the National Tax Practice Institute). The Culinary Union would like all convention business at the Cosmo to vanish. This year’s conference is also scheduled for the Cosmo. The Culinary Union decided on the strategy of calling EA’s…in the middle of tax season.

Today, someone from the Culinary Union called me. I was on the phone, so the call went to voice mail. After listening to the first 20 seconds of the message I hit delete. I don’t have time for much besides work, sleep, and the gym during the height of tax season–and it is just that right now: the height of tax season.

I’m not taking sides for or against the Culinary Union. They may be right in their fight against the Cosmo or they may be wrong. However, they’re dead wrong in calling tax professionals at the height of tax season. If anything, the Culinary Union’s current action is counterproductive. While today’s call will not impact whether or not I attend the conference, if I did make a decision based on the call I’d be attending.

A hint to the Culinary Union: Tax professionals are far less busy after April 15th. We have time to listen then…but not now.

One Year In

Thursday, December 6th, 2012

Nevada Flag

One year ago, I announced my move from, as Joe Kristan put it, “the perfumed air and divine weather of Orange County to the desert wastes of Nevada.” A friend asked me to expound on my move, both the good and the bad.

There isn’t much that’s bad for me to report on. My electric bill is painful in the summer; my July bill went up over 4000% [1]. I don’t have grass in my front lawn (but even in Irvine that was an issue). There’s nothing particularly old or historic to see in Las Vegas. When the historic relics are the old casinos such as the Golden Gate [2], historic items are few and far between.

There’s a lot, though, to love. I was told that I wouldn’t know my neighbors, that people aren’t friendly, and that it’s a transient community. I know my neighbors (who are very nice people), people went out of their way to introduce themselves, and while there are definitely transient neighborhoods (especially areas very hard hit by the housing bust), I live in a typical suburban neighborhood. I have a lot more house than I did in Irvine at a lot less cost. The cost of living here is less, and my state income tax bill is almost zero [3]. I’m reconnecting with friends who moved here, and I’m having fun.

The biggest surprise to me is that I’m doing far less driving than I used to. Las Vegas, like Orange County, is full of strip malls. Indeed, the area I live in (Summerlin) is modeled after Irvine. The Las Vegas valley is smaller, and the distances less. This ends up being a big saving. This is especially true when you add in the cost of gasoline; it’s $0.20 a gallon cheaper here than in California [4].

Knowing what I do now, would I have made the move? Absolutely–and maybe faster.

[1] In Irvine, I rarely needed to run the air conditioning (I lived near the ocean which provided free air conditioning). I signed up for Southern California Edison’s air conditioning cycling program. That caused my summer electricity bills to fall by almost 90%. Here in Las Vegas, I have a larger home that must be air conditioned. In the summer, the air conditioning runs at all hours. I knew that I would have large bills…and it wasn’t a surprise.

[2] The Golden Gate Casino, originally the Sal Sagev, is Las Vegas’ first casino. It’s downtown at 1 Fremont Street. They have a great shrimp cocktail special ($1.99, though you must join their slot club for this price).

[3] Nevada has no state income tax. I will have to pay a small amount of Maryland income tax this year because of our Maryland office; it’s likely under $100.

[4] All gasoline is imported from other states into Nevada (there are no oil refineries in Nevada). Yet even including shipping costs you pay less for gasoline here than in California. The obvious (and true) conclusion is that state taxes drive up the cost of gasoline in California.

Escort Service Operator Charged with Structuring

Monday, October 8th, 2012

Here in Las Vegas, escort services and strip clubs are big business. They’re also (generally) cash businesses. A joint police task force has been looking into the operations. The local police are concerned about prostitution (it is illegal in Clark County, which includes Las Vegas); federal authorities are interested in tax evasion. One local man has found himself charged with structuring.

As I’ve reported before, structuring is deliberately making cash deposits under $10,000 so as to avoid currency transaction reports. It’s a felony.

Emmanouil Varagiannis has been charged with structuring. Mr. Varagiannis is the general manager of the Olympic Garden. He’s alleged to have made 208 cash deposits totaling more than $1.8 million…all under $10,000. The structuring apparently relates to Midnight Inc.; that entity, which does business as Midnight Entertainers, is an escort service.

The news story in the Review-Journal noted that the task force continues to probe allegations of prostitution and kickbacks to cab drivers who direct customers to specific strip clubs. It is worth noting that Mr. Varagiannis has only been charged with one count of structuring and has not been charged with anything else.