Government

Tire inflation machine operator to pay New York $4.25 million for tax evasion

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April 7, 2021

New York State has secured $4.25 million from a provider of air inflation services and its owner, after they were caught evading taxes, according to an announcement from State Attorney General Letitia James.

The agreement resolves claims that the Nassau County-based company Service Station Vending Equipment Inc., a provider of self-service, coin-operated air machines used to inflate automobile tires — and its owner, William McCabe, failed to pay sales tax due on sales of air inflation services, as well as engaged in fraudulent tax avoidance schemes by underreporting sales and paying workers off the books.

An investigation by the Office of the Attorney General found that the company and McCabe evaded more than $2.4 million in sales taxes for services for the period from 2010 through 2018. The company and McCabe also evaded income taxes, employee withholding taxes and workers' compensation payments to the New York state Insurance Fund by underreporting sales and paying workers off the books.