SHOW LOW — Timothy and Tiffany Cywinski, former owners of Cattlemen’s Steakhouse and Lounge in Show Low, Arizona, have been charged with federal tax evasion. The U.S. Attorney’s Office for the District of Arizona alleges that between 2016 and 2020, the Cywinskis underreported income and misused business funds for personal expenses.
According to federal documents, the Cywinskis submitted a fraudulent 2020 tax return in May 2021, reporting approximately $207,000 in income and $34,000 in taxes owed. However, authorities claim that their actual income was significantly higher. Investigators allege that the couple concealed and underreported gross revenue on their Form 1120s to their accountant, resulting in them paying less in taxes.
Federal officials say that most cash payments were “zeroed out” from the restaurant’s point-of-sale system. Additionally, cash and checks for large groups and holiday parties were deposited into a personal bank account and were not included as restaurant revenue. Investigators also allege that other restaurant sales were routed to a Square account linked solely to the Cywinskis’ personal checking account. Furthermore, the couple allegedly reported personal expenses, such as groceries and Amazon purchases, as “business expenses” to their accountant.
The Cywinskis have been charged with one count of tax evasion. If convicted or a guilty plea is submitted, they could face up to five years in prison, fines, and restitution.
Cattlemen’s Steakhouse and Lounge is a popular spot along White Mountain Road. It has since changed ownership and is a popular place to enjoy a good steak.
