A Maryland store owner has admitted to evading taxes by not declaring cash taken from his business. William M. Bundy, who owns Bab’s Inc. in District Heights, entered a guilty plea for failing to report income derived from his store.
Court documents reveal that Bundy operated Bab’s Inc., which only accepted cash payments, for over two decades. From 2017 to 2021, he received wages and took additional cash from the business without reporting it on his tax returns. The unreported funds were used for personal expenses, including gambling activities. Over five years, Bundy lost more than $3 million at two local casinos, with $2.2 million sourced from Bab’s.
Bundy's actions resulted in an additional tax liability of $672,558 for the period between 2017 and 2021.
Sentencing is set for February 21, 2025. Bundy could face up to five years in prison along with supervised release, restitution, and financial penalties. A federal district court judge will determine the sentence based on U.S. Sentencing Guidelines and other factors.
The announcement was made by Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Erek L. Barron for the District of Maryland.
The case is being investigated by IRS Criminal Investigation and prosecuted by Trial Attorney Michael C. Vasiliadis of the Tax Division alongside Assistant U.S. Attorney Coreen Mao for the District of Maryland.