According to the indictment, from 2008 to 2013, Alice Bixuan Zhang of Queens owned and operated Welling Physical Therapy and Acupuncture PLLC (Welling) and, from 2012 to 2013, co-owned Wellife Physical Therapy and Acupuncture PLLC (Wellife).
Both businesses had locations throughout New York City. As charged, Zhang and her co-conspirator took multiple steps to reduce the income they reported and taxes they paid to the IRS.
- They allegedly diverted funds from Welling and Wellife to other entities that they controlled (“Related Companies”), and
- Zhang and her co-conspirator reported those funds as deductible business expenses, thereby reducing the taxable income of Welling and Wellife.
- Zhang and her co-conspirator then allegedly sought to conceal from the IRS income earned by the Related Companies by cashing checks made to those firms at a check cashing business, and not disclosing that income to their tax return preparers, which resulted in the preparation of false income tax returns.
If convicted, she faces a maximum penalty of five (5) years in prison on the conspiracy charge and three (3) years in prison for assisting in filing a false return.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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