Feds: Grand Rapids bar owners deleted sales records ahead of IRS investigation

Posted at 11:43 PM, Dec 27, 2016
and last updated 2016-12-27 23:43:47-05

GRAND RAPIDS, Mich. -- Two owners of a Grand Rapids bar are facing federal charges after investigators say they deleted sales records in an attempt to hide unreported revenue to the IRS.

Court documents show that Michael Farah and his son Brian, who operate Farah's Bar on Michigan St NE, are accused of deleting point of sale (POS) records from 2013 and 2014 in an effort to conceal the true income of their businesses Kuzzins Inc, Kuzzins I and Kuzzins II.

Brian Farah entered a guilty plea Dec 12, admitting to deleting business records once he learned that the IRS requested an examination of their businesses, saying that he called the POS administrator several times to learn how to delete the files from their computer.

In 2013, $232,000 went unreported on the businesses' tax returns, and in 2014, another $176,000, according to Brian's plea document.

Michael Farah is pleading not guilty as of a court appearance on December 21.

Earlier in December, an expansion to Farah's was proposed to the Grand Rapids Planning Commission, looking to make a one-story addition and add an outdoor service area.