CT man owes IRS $270K in back taxes, penalties. Feds say he didn’t disclose ‘significant income.’

A Connecticut man who has owned multiple businesses in the region has pleaded guilty to tax evasion in a plea agreement that will require him to pay just over $270,000 in back taxes.

Vishal Dhar, 55, of New Canaan waived his right to be indicted and pleaded guilty during a hearing in federal court in Bridgeport this week, according to the U.S. Attorney’s Office for the District of Connecticut.

According to federal officials, Dhar over the years has formed and operated multiple entities, including Grey Brown, Inc. — a holding company for several restaurants operating under the name “Oaxaca Taqueria” —  West Partners, Inc., and NY Cloud Kitchens, LLC.

Between October 2013 and August 2023, officials said, Dhar “willfully failed to disclose” to the IRS “significant income” from his business and gifts from family members.

“Instead of paying his outstanding tax liabilities, Dhar paid off personal and business debts, invested in a new business venture and paid various personal expenses,” the U.S. Attorney’s Office said in a statement. “In evading his payment of taxes owed, Dhar used financial accounts in the names of entities and other individuals rather than in his own name, paid personal expenses with corporate funds, and omitted significant assets on IRS forms.”

Federal officials further allege that in a bankruptcy case involving Grey Brown Inc., which was filed in the Southern District of New York, Dhar failed to disclose that he received a check for just over $254,000 as an Employee Retention Credit. The check was made payable to Oaxaca Atlantic Avenue, LLC.

Officials said an Employee Retention Credit is a refundable tax credit for certain eligible businesses and tax-exempt organizations that were affected during the COVID-19 pandemic.

An investigation found that Dhar owes $272,390 in back taxes, penalties and interest for the 2011 to 2020 tax years, federal authorities said.

Under the terms of his plea agreement, Dhar has agreed to pay full restitution.

He is free from custody while he awaits sentencing, which has been scheduled for Aug. 15. He faces a maximum of five years in prison.