Restaurant Owner’s $2M Tax Fraud Mistake: What Business Owners Should Learn

John Drivas, the owner of three North Shore restaurants, was sentenced to over a year in prison after admitting to a tax fraud scheme that spanned six years. He avoided paying federal employment taxes and misused over $1.5 million in meals taxes collected from customers. Instead of reporting accurate wages to the IRS, he paid employees “under the table,” skirting nearly $440,000 in employment taxes. Meanwhile, the meals taxes collected from customers were pocketed instead of being sent to the state.

Drivas now faces prison time, over $2 million in restitution to the IRS and state tax authorities, and a hefty $20,000 fine. This case serves as a wake-up call for restaurant owners and business operators: tax laws are strict, and violations can lead to criminal charges, financial ruin, and jail time.

At IRSProb.com, we understand how overwhelming tax compliance can feel, especially for busy entrepreneurs juggling countless responsibilities. Mistakes—whether intentional or not—can escalate quickly, putting your business and freedom at risk. But you don’t have to face it alone.

Navigating complex tax rules doesn’t have to be overwhelming. We specialize in helping business owners stay compliant, avoid legal trouble, and resolve tax challenges. If you’re concerned about your tax situation, don’t wait until it’s too late. Don’t risk your business’s future—act now to ensure compliance. Remember, the cost of getting it wrong is far greater than the investment in doing it right.

Let IRSProb.com be your partner in staying on the right side of tax law. Contact us today at 214-214-3000 to protect your business and your peace of mind.