Jeff Winick sued by IRS for not paying taxes

Feds say Winick owes nearly $10M

New York /
May.May 18, 2021 02:05 PM
Jeff Winick (Getty)

Jeff Winick (Getty)

Jeff Winick, the founder and CEO of Winick Realty Group and one of New York’s top retail brokers, is being sued by the IRS for not paying his taxes.

In a complaint filed Monday, the IRS says that Winick underpaid taxes owed on approximately $23 million in income between 2012 and 2016, and avoided paying by renting and leasing his homes and cars and transferring assets to his daughter and other friends.

In September, Winick filed for Chapter 7 bankruptcy, which the IRS alleges was an attempt to avoid paying millions of dollars that he owes the agency “without sacrificing the luxuries and business interests he has obtained over the years.”

Among the expenses cited by the IRS in its lawsuit are a $17,000 per month apartment on 54th Street and a $15,000 per month home in Southampton; $18,000 per month for his daughter’s New York University tuition and living expenses; a boat, which he sold and then did not pay taxes on; and two Mercedes-Benzes.

In bankruptcy filings, Winick claimed to have $530,000 in assets and $9.7 million in back taxes and fines owed to the IRS — which says it holds 90 percent of his debt — and the New York State Department of Taxation and Finance. He declared $122,800 in monthly income.

The IRS alleges that before declaring bankruptcy, Winick transferred several of his assets to friends and family. For example, in 2016, Winick transferred a 74 percent interest in Winick Realty Group NJ, LLC — the New Jersey affiliate of Winick Realty — to a trust, with his daughter as beneficiary. He similarly lived out of residences in his daughter’s name and leased cars under the company’s name, per the complaint.

The lawsuit also accuses Winick of undervaluing assets. In his bankruptcy filings, Winick listed his 22.5 percent interest in Winick Realty and 60 percent interest in WTN (which the complaint notes is “an entity that has as its sole asset a 67.5% interest in Winick Realty”) as having “unknown” value. However, accountants and appraisers had conducted valuations of the firms in 2018, determining that Winick Realty was worth between $3.3 and $11.8 million.

He similarly listed the value of Rolex watches as $5,000, but Christi Sothers Fine Jewelry appraised them at $47,500.

Winick has previously agreed to pay back his debts to the IRS, but has defaulted on three separate agreements. Apart from his yearly withholdings, Winick has made approximately $2 millions in payments towards his 2012 through 2016 liabilities. That’s less than what he owed in 2012 alone.

Winick did not immediately respond to a request for comment.





    Related Articles

    arrow_forward_ios
    A closer look at Compass’ trail of litigation over its business tactics
    A closer look at Compass’ trail of litigation over its business tactics
    A closer look at Compass’ trail of litigation over its business tactics
    From left: Mathew Chapman, Michele Kowal, Maryanne Elsaesser and Rhonda Battifarano (NJ Home Navigators)
    Christie’s NJ affiliate claims “big win” in agent-poaching dispute with Compass
    Christie’s NJ affiliate claims “big win” in agent-poaching dispute with Compass
    Ronald Olson pleaded guilty to the tax evasion charge last July (iStock)
    Former Turner Construction exec sentenced to 4 years in prison
    Former Turner Construction exec sentenced to 4 years in prison
    From left: Alvin Dworman, 155 East 55th Street, 65 West 55th Street, and 210 East 58th Street (Getty, Google Maps)
    Alvin Dworman Sells 3 Manhattan Buildings for $65M
    Alvin Dworman Sells 3 Manhattan Buildings for $65M
    (Illustration by Kevin Rebong for The Real Deal)
    Years ago he took a bribe. Now he can’t get a license
    Years ago he took a bribe. Now he can’t get a license
    Anita Durst and images of Chashama (Photos via Getty, Chashama)
    Durst-backed nonprofit puts startups into empty storefronts
    Durst-backed nonprofit puts startups into empty storefronts
    Fair Housing Justice Center President Bernhard Blythe and Eastchester (Blythe Designs, Getty)
    Discrimination suit prompts suburb to change Section 8 housing policy
    Discrimination suit prompts suburb to change Section 8 housing policy
    The Closing: Janice Mac Avoy
    The Closing: Janice Mac Avoy
    The Closing: Janice Mac Avoy
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...