WESTFIELD, NJ - The owner of a New York City printing business was sentenced today to one year and one day in federal prison for failing to report approximately $189,520 in additional income he received from the printing business and rental properties he owned in Brooklyn, New York.U.S. District Judge Peter Sheridan also ordered David Waxtel, of Westfield, to pay a fine of $5,000 and to serve two years on supervised release after his release from prison.

William P. Offord, Special Agent in Charge, IRS, Criminal Investigation, stated, "Tax evasion is not a victimless crime. Honest, hardworking Americans pay the price when others choose to evade their tax obligations."

Previously, on October 23, 2008, Waxtel pleaded guilty before Judge Sheridan to a one-count Information that charges him with income tax evasion for the 2003 tax year.

According to court documents, Waxtel was the President and 100% shareholder of Quantum Printing Company, Inc., (hereinafter "Quantum Printing"), located in New York City. As a subchapter S corporation, the profits of Quantum Printing passed through to its sole shareholder, David Waxtel, who was required to report all the profits on his U.S. Individual Income Tax Returns, Forms 1040. Waxtel received checks from customers of Quantum Printing made payable to Quantum Printing, which he deposited into the business bank accounts. Waxtel failed to report on Quantum Printing's 2002 through 2005 corporate Subchapter S Tax Returns, Forms 1120S, or his 2002 through 2005 U.S. Individual Income Tax

Returns, Forms 1040, certain payments from customers that had been deposited into the business bank accounts and subsequently diverted to his personal checking account or his personal investment accounts.

Waxtel also owned two rental properties, each consisting of multiple rental units, in Brooklyn, New York. Waxtel received monthly rental payments from tenants of the rental properties in the form of checks made payable to David Waxtel, all of which he deposited into his personal checking account. Waxtel failed to report on his 2002 through 2005 U.S. Individual Income Tax Returns, Forms 1040, certain rental payments which he diverted to pay for personal expenses or which he transferred into personal investment accounts.

By failing to report the additional income of approximately $189,520 during the year 2003 from Quantum Printing and his rental properties, Waxtel evaded approximately $51,604 of taxes due and owing to the United States.

The investigation and prosecution of Waxtel was conducted by IRS-Criminal Investigation and the United States Attorney's Office for the District of New Jersey.