News and Press Releases

Owner of accounting firm sentenced to prison for failing to pay money withheld from employees to the IRS

June 29, 2011


NEWARK, N.J. – The majority owner of an accounting firm in Montvale, N.J., was sentenced today to six months in prison and six months of home confinement for failing to pay the IRS taxes that the firm withheld from its employees’ wages, U.S. Attorney Paul J. Fishman announced.

Barry S. Malkin, 69, of Upper Saddle River, N.J., previously pleaded guilty before U.S. Magistrate Judge Patty Shwartz to a criminal Information charging him with failing to truthfully account for and pay over taxes withheld by his accounting firm, Malkin, Coppock & Company (“MCC”). U.S. District Judge Faith S. Hochberg imposed the sentence today in Newark federal court.

According to the Information to which Malkin pleaded guilty and statements made in court:

In addition to being the majority owner of MCC, Malkin was a Certified Public Accountant who provided tax accounting services to the firm’s clients, including the preparation of individual and corporate tax returns. Malkin was responsible for withholding federal income and FICA taxes from the wages of the employees of MCC and paying those taxes over to the IRS. Malkin admitted that although the taxes were withheld from 2001 through 2008, he did not file any payroll tax returns or pay any of the withheld taxes over to the IRS, failing to pay over $137,000 in payroll taxes.

In addition to the prison term, Judge Hochberg sentenced Malkin to two years of supervised release and ordered him to pay what was owed to the IRS.

U.S. Attorney Fishman credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Victor W. Lessoff, with the investigation leading to today’s sentence.

The government is represented by Assistant U.S. Attorney Christopher J. Kelly of the U.S. Attorney’s Office Economic Crimes Unit in Newark.


Defense counsel: Candace Hom Esq., Assistant Federal Public Defender, Newark

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