Feds demand Hudson Valley bakery records for IRS investigation

The IRS wants to know more about Joel Lebovits”™ business finances but the Hudson Valley bakery executive has not cooperated.

U.S. Attorney Geoffrey S. Berman petitioned federal court on Oct. 22 to compel Lebovits, as president of Catskills Bakery Corp., 4437 Route 42, Monticello, to testify and produce financial records from 2016 and 2017.

“The testimony and documents sought by the summons may be relevant to, and can reasonably be expected to cast light upon, the subject of the IRS”™ investigation,” the petition states.

The Internal Revenue Service had previously summoned Lebovits, a Monroe resident, to an examination on Sept. 6, 2018, according to the petition. He failed to appear. He was directed again this year and failed to show up for a March 5 examination.

U.S. District Judge Vincent L. Briccetti ordered Lebovits to appear in court on Dec. 11 to show cause why he should not be compelled to testify or produce the records demanded by the IRS.

The Monticello bakery is also dealing with a foreclosure action. Finwise Bank of Sandy, Utah sued Lebovits and several of his companies on June 27 in Supreme Court, Sullivan County.

The borrowers had mortgaged the Route 42 property for $810,000. They defaulted, Finwise claims, by failures to make mortgage payments, pay real estate taxes, maintain insurance and provide the bank with copies of 2017 and 2018 tax returns.

As of Aug. 7, they owed Finwise $822,879 in principal, interest and late fees. The bank agreed to a forbearance deal in which Lebovits and his companies agreed to pay $6,200 a month and the bank agreed to defer 1.75% of the interest rate.

Besides Catskills Bakery Corp., the bank”™s lawsuit shows Lebovits as either sole managing member or president-secretary of RT 42 4437 LLC, Monticello; Evergreen Bakery NJ Corp., Lakewood, New Jersey; Hatzlacha Bakery Corp., Spring Valley; Rugalech Bakery Corp., Monsey; and West Street Bakery Corp., Monticello.