City Files Lawsuit Over Tax-Free Internet Cigarette Sales
New York City has filed a federal lawsuit accusing 32 people of evading millions of dollars in taxes by buying heaps of cigarettes over the Internet, and then reselling them on the black market.
The suit takes aim at city residents who bought cigarettes from Chavez Inc., a Louisville, Ky., company that was raided and effectively shuttered by federal agents in late 2009.
The defendants include one woman accused of having nearly $1 million worth of cigarettes shipped to her Brooklyn apartment over three years — about 32,000 cartons.
The city is seeking $6.5 million in unpaid taxes from Chavez Inc. and the other defendants, plus $13 million in penalties.
Lawyers for Chavez have said the company was not legally obligated to collect taxes on out-of-state sales.
meir
will the real gonifs please stand up.
stop now
i know people in CH who do this for a living
its time to stop before you get caught! its not worth it. you can go for a few years but when they catch you it wont be good
Lloyd A Cohen
It is not that smoke, nicotine or tar that kills you, it is the taxes on the item especially city’s as Bloomberg wants more and more of your money in return for non-services