The current tax system in the United States is set up to allow consumers the ability to deduct some things from their tax bill. This reflects the reality that people in Minnesota and around the nation logically want and need to seek opportunities to reduce their tax burden and keep more of the money they earn for themselves. However, there may be at times a fine line between what is considered a legal way of reducing tax debt and what is considered tax fraud.
Reports indicate that a man from the Minneapolis-St. Paul area and his wife have recently entered guilty pleas in response to criminal charges involving tax return filings or tax payments. The wife is said to have plead guilty to filing a false tax return. The man was the owner of two businesses over the course of several years and the licenses for both were eventually revoked. One business license was revoked in 2015 and the other business was ordered to shut down in 2017.
The man’s charges include tax fraud for his alleged failure to pay the Internal Revenue Service. He is accused of keeping the money he took out of his employees’ paychecks for employment taxes instead of paying this to the government. It is not known what type of penalties may be associated with his charges or if he may enter into a plea agreement.
Minnesota residents facing serious criminal charges involving tax payments may want to talk with an attorney to learn about their defense options.
Source: CBS Minnesota, “Owner Of Credit Repair Service Pleads Guilty To Not Paying Taxes,” November 29, 2017