A federal tax case in the US is drawing significant attention from the Vietnamese community, particularly within the nail salon industry.
According to an announcement on June 3, 2026, from the US Department of Justice, Vinh Q. Ho (53) and Thanh Lan Do (34) — owners of a system of over 60 nail salons across the US, including Anthony Vince Nail Salons, Prive Nail Spas, and Zen Nail & Spas — have pleaded guilty in a case involving tax fraud.
Court records indicate that from 2016 to 2024, this system paid more than $116 million in off-the-books cash wages to employees but failed to fully report it to the US Internal Revenue Service (IRS). The estimated tax loss is at least $32 million.
Federal prosecutors stated that the defendants instructed salon managers to make cash wage payments, file inaccurate tax documents, and conceal a portion of employees' actual income. Mr. Ho also pleaded guilty to additional charges of personal income tax evasion related to the years 2020 and 2021.
The case serves as a major warning for cash-intensive industries such as nail salons, hair salons, massage parlors, and restaurants.
Tax experts state:
• "Under-the-table" payments can lead to very serious legal consequences.
• Business owners may face federal prison time, large fines, and the risk of asset forfeiture.
• Non-US citizens may also face severe immigration consequences.
• Employees who receive cash payments but do not report them correctly are also at risk of back taxes, penalties, and investigation.
Many salon owners often believe this method helps "reduce taxes," but when investigated, the financial and legal consequences can last for many years.
Experts recommend:
• Payroll should be processed via bank transfers or a clear payroll system.
• Maintain complete records.
• File taxes in compliance with federal and state regulations.
• If tax errors currently exist, consult a reputable tax attorney or CPA to make lawful adjustments as soon as possible.
Sustainable business is always linked to legal compliance and transparent tax reporting.
