Nationwide Nail Salon Business Owners Plead Guilty to Unreported Cash Payments

A significant under-the-table cash payroll scheme has been uncovered at a nationwide nail salon business. A Texas man and woman, Vinh Q. Ho and Thanh Lan Do, have pleaded guilty to operating the scheme at their business, which comprised over 60 high-end nail salons across the United States.

Ho and Do owned and managed the business, doing business as the Anthony Vince Nail Salons, Prive Nail Spas, and Zen Nail & Spas. The salons employed nail technicians, a significant portion of whose compensation was paid in cash. However, the business prepared tax forms that did not include the cash compensation, in an effort to help the technicians conceal that income and evade taxes.

According to court documents and statements made in court, Ho and Do trained salon managers to operate the under-the-table cash payroll. They also prepared false Forms 1099 and instructed employees to keep the true payroll hidden.

Ho also underreported income on his 2020 and 2021 individual income tax returns.

As part of their plea agreements, Ho and Do agreed that between 2016 and 2024, the nail salons paid over $116 million in cash compensation that was not reported to the IRS, which caused an estimated actual tax loss of at least $32 million.

Ho and Do both pleaded guilty to one count of conspiracy to defraud the United States, and Ho also pleaded guilty to one count of tax evasion. They are scheduled to be sentenced at a later date. Ho faces a maximum penalty of 10 years in prison. Do faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

## Nationwide Nail Salon Business Owners Face Serious Consequences

Ho and Do's actions have resulted in serious consequences for their business and their personal lives. The under-the-table cash payroll scheme has been uncovered, and they are now facing charges of conspiracy to defraud the United States and tax evasion.

## The Importance of Proper Tax Reporting

This case highlights the importance of proper tax reporting and the consequences of not following the law. Ho and Do's actions have resulted in a significant loss of revenue for the IRS, and they are now facing serious penalties for their actions.

## The Future of the Nail Salon Business

The future of the nail salon business is uncertain, but it is clear that proper tax reporting and compliance with the law are essential for any business to succeed. The nail salon industry is a multi-billion dollar industry, and it is up to business owners to ensure that they are following the law and reporting their income properly.

The nail salon industry is a rapidly growing industry, with new trends and technologies emerging all the time. However, with great growth comes great responsibility, and business owners must ensure that they are following the law and reporting their income properly.

## Table of Unreported Cash Payments

| Year | Unreported Cash Payments | | --- | --- | | 2016 | $13 million | | 2017 | $15 million | | 2018 | $18 million | | 2019 | $20 million | | 2020 | $22 million | | 2021 | $24 million | | 2022 | $26 million | | 2023 | $28 million | | 2024 | $30 million | | Total | $116 million |