Virginia Business Owner Pleads Guilty to Tax Fraud for Failing to Pay Employees' Withheld Taxes

A Virginia man pleaded guilty today to failing to pay over to the IRS the taxes withheld from his employees’ paychecks. 

According to court documents and statements made in court, Rick Tariq Rahim owned and operated several businesses, including laser tag facilities and an Amazon reseller. From 2015 to 2021, Rahim did not pay to the IRS the taxes withheld from his employees’ paychecks or file the required quarterly employment tax returns reporting those withholdings.

Additionally, between October 2010 and October 2012, Rahim filed two personal income tax returns on which he reported owing substantial taxes but did not pay the taxes he reported were due. When the IRS attempted to collect the unpaid taxes, Rahim submitted a false Form 433-A, Collection Information Statement, which omitted valuable assets he owned, including a helicopter, 2006 Bentley, 2008 Lamborghini and real property in Great Falls, Virginia. Approximately two weeks later, Rahim transferred ownership of that Great Falls property to his wife. He also paid personal expenses from his business bank accounts, including more than $889,000 toward his mortgages and more than $669,000 to purchase or lease cars, including three different Lamborghinis. In addition, Rahim withdrew more than $1.1 million in cash in amounts less than $10,000 to avoid triggering currency transaction reports from the bank.

Rahim has not filed a personal income tax return since 2012 despite earning more than $34 million in gross income.

In total, Rahim has caused a loss to the IRS of at least $1,844,489. His sentencing is scheduled for June 25.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jessica D. Aber for the Eastern District of Virginia made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorneys William Montague and Ashley Stein of the Justice Department’s Tax Division and Assistant U.S. Attorney Kimberly Shartar for the Eastern District of Virginia are prosecuting the case.