Former Owner of Philadelphia Restaurant Pleads Guilty to Tax Evasion

PHILADELPHIA - United States Attorney David Metcalf announced that Cihan Calkap, 42, of Drexel Hill, Pennsylvania, entered a plea of guilty today before United States District Judge Kai N. Scott on one count of tax evasion.

As detailed in court filings and statements, Calkap owned and operated Mimmo's Pizza and Kitchen, a Philadelphia restaurant. Between 2015 and 2019, Mimmo's earned significant total income and employed approximately 25 employees. Rather than depositing all of the receipts into business bank accounts, Calkap took cash from the business. He used this cash to pay himself and to operate an "off the books" payroll for most of his employees.

Calkap avoided paying taxes on this money by providing his accountant with incomplete information about the restaurant's income and expenses. In particular, Calkap gave his return preparer access only to the business's bank records, knowing that those records did not include all of the cash income. This caused the accountant to prepare false corporate and personal income tax returns on behalf of Mimmo's and Calkap that were filed with the IRS. From 2015 to 2018, Calkap underreported Mimmo's total receipts.

Calkap also falsely told his return preparer that Mimmo's only had four employees, including himself, when in reality it had approximately 25 employees. As a result, Calkap was able to minimize the employment taxes he collected and paid over to the IRS on behalf of Mimmo's.

The defendant is scheduled to be sentenced on May 14 and faces a maximum possible term of five years in prison.

The case was investigated by IRS Criminal Investigation and is being prosecuted by Assistant Deputy Chief Thomas F. Koelbl and Trial Attorney Likhitha Butchireddygari of the Department of Justice Criminal Division's Tax Section, with assistance from the U.S. Attorney's Office.