Mays Landing, NJ, Woman Admits to $1.18M IRS Payroll Tax Fraud Scheme

• Denise Davis pleaded guilty to conspiring to defraud the IRS
• She and a bookkeeper hid cash payrolls for a chimney sweep business
• The scheme caused $1.18 million in tax losses, officials said

Guilty Plea in Federal Court

A Mays Landing woman has admitted to conspiring to defraud the federal government by filing false employment tax returns that concealed a company's cash payroll.

Earlier this week in Camden federal court, 52-year-old Denise Davis pleaded guilty to one count of conspiring to defraud the IRS.

Details of the Scheme

Federal authorities said Davis worked at an Egg Harbor Township-based chimney sweep and masonry company that her spouse owned.

Davis admitted that between January 1st, 2018, and April 30th, 2024, she conspired with Henry Collins, the business's bookkeeper, to defraud the IRS.

As part of the conspiracy, Collins utilized a commercial check casher to negotiate a substantial amount of the business's gross receipts checks. Collins used some of the resulting cash to pay himself and other employees in cash. Collins provided the rest of the cash to Davis and her spouse.

• READ MORE: Unidentified Motorcyclist Seriously Hurt in Egg Harbor Twp. Crash

Davis and Collins then provided false and misleading information to the business's outside accounting firm, which resulted in the preparation and filing of false payroll tax returns that omitted the employees' paid-in-cash and their cash wages.

Davis also admitted that she failed to file individual income tax returns for herself and her spouse during the same time period.

• READ MORE: 57-year-old Rio Grande Man on E-bike Killed on Route 47

Over $1 Million in Tax Losses Reported

Davis admitted that the conspiracy resulted in a tax loss of approximately $1.18 million.

The count of conspiracy carries a maximum penalty of five years in prison and a fine of up to $250,000. Sentencing is scheduled for February 4th.

Collins previously pleaded guilty to his role in the conspiracy and is scheduled to be sentenced in December.