Watervliet doctor to pay restitution for filing false tax return

ALBANY, N.Y. (NEWS10) -- A Watervliet doctor has been ordered to pay restitution Thursday for allegedly underreporting his income from 2015 to 2018. Ehad Kodsi, 56, of Watervliet, will pay $245,212 and an additional $25,000 fine for doing so.

In his guilty plea, Kodsi admitted that from 2015 to 2018, he underreported his businesses’ revenues to the IRS, and improperly deducted personal and business expenses, according to law enforcement. As a result, he failed to report a total of $822,069 in income and did not pay $245,212 in taxes.

The U.S. Department of Justice says Kodsi did not report income he received from third-party reimbursing services provided by his pain management clinic, as well as deducting personal expenses as business expenses, overstating business expenses related to his and his family's use of cars, and deducted the same business expense multiple times. This case was investigated by IRS-CI and prosecuted by Assistant U.S. Attorney Michael Barnett.

Senior United States District Judge Lawrence E. Kahn ordered Kodsi to pay $245,212 to the IRS, which Kodsi has already done. He will also serve one year of probation which will include 100 hours of community service.