Worcester Auto Body Shop Owner Pleads Guilty to Tax Fraud

 by Patrick SargentSeptember 22, 2020

WORCESTER - The owner of a Worcester auto body shop plead guilty on Monday, September 21, to a payroll tax scheme resulting in a tax loss of more than $290,000.

Adam Haddad, 43, of Shrewsbury, plead guilty to three counts of aiding the preparation of false tax returns. Haddad is scheduled for sentencing on Jan. 13, 2021. He was charged last month.

According to the U.S. Department of Justice, from March 2015 through June 2017, Haddad paid a significant portion of the wages to employees of his company, Accurate Collision, Inc. “under the table.” In doing so, Haddad caused Accurate Collision, Inc. to file false returns with the IRS which underreported the actual wages he had paid his employees as well as the employment taxes due to the IRS.

In total, Haddad caused a loss to the IRS of at least $292,231.

Haddad faces a sentence of up to three years in prison, one year of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater.

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