Tax judge leaves Yonkers’ mother off the hook for son’s business taxes

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A woman from Yonkers is not responsible for taxes at a construction company, a state tax judge ruled, because her son had filed cases in her name to preserve his assets while he was divorced.

Kevin R. Law, an administrative law judge in the state’s Tax Appeals Division, on Dec. 30, set aside $ 62,231 in taxes, interest and penalties that had been assessed against Eileen Camerota.

The state tax division had identified her as the officer or person responsible for paying taxes for Brenmac Corp. from 2016 to 2018.

She asked the state to write off the tax debt.

Brenmac was established in 2014, according to a Crown corporation file, and it uses an address on McClean Avenue in Yonkers which is the location of a UPS store with public mailboxes.

Camerota has been identified as the president of Brenmac and the person responsible for signing checks and making business decisions on several tax forms.

She testified in a videoconference hearing last February that she had nothing to do with Brenmac. She testified that she was not a shareholder, officer, director or employee and that she had not authorized the submission of documents to the Crown on her behalf.

The business was owned by her son, John McLoughlin, she said. His only implication was signing a line of credit because he had previously filed for bankruptcy and was in the process of a divorce.

When she received tax notices, she said, she gave them to her son and he told her he would take care of them. When the state brought charges against her bank account, she hired a lawyer to officially inform Brenmac that she had never knowingly acted on behalf of the company.

McLoughlin testified that he owned Brenmac and that his mother had nothing to do with the business other than signing the line of credit.

He admitted to giving his accountant his mother’s personal information to use on tax documents, according to Law’s findings, “because he was getting a divorce” and “because he lost everything to his ex-wife during the said divorce “.

The Taxation Division acted reasonably when issuing tax notices to Camerota, Law ruled, based on the tax forms it received. Law ruled that the body of evidence established that McLaughlin “used his mother’s identity when creating Brenmac for the purpose of preserving her assets during her divorce.”

Camerota was represented by Elmsford lawyer Peter T. Goodrich.

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