Montrose couple charged with multiple tax crimes
The Minnesota Department of Revenue announced that the Wright County Attorney’s Office recently charged Susan Luanne McDonough and Michael Eugene McDonough with six tax-related felonies each.
The McDonoughs are charged with three counts each of failing to file Minnesota income tax returns and three counts each of failing to pay Minnesota income taxes.
According to the complaint, the McDonoughs willfully attempted to evade filing of state income tax returns and paying state income taxes for tax years 2012, 2013, and 2014. The complaint states that the McDonoughs had taxable income for the years in question, and willfully failed to file and pay their state income taxes. Department investigators determined that the McDonoughs knew of their obligation to file and pay state income taxes due to Susan McDonough’s job duties including preparing her employer’s tax returns and her profession as a personal and business tax preparer, according to the complaint. The McDonoughs also filed state income tax returns in previous years and filed federal income tax returns for tax years 2012 through 2014, the complaint states, further showing that they knew of their obligation to file and pay Minnesota income taxes.
Each tax-related felony charge carries a maximum penalty of five years in prison, a $10,000 fine, or both. Defendants are presumed innocent unless and until proven guilty.
Although most taxpayers comply with tax laws voluntarily, the Minnesota Department of Revenue takes enforcement action against noncompliant taxpayers to ensure that tax laws are administered fairly.
Many of the department’s criminal case referrals come from citizen tips. The Minnesota Department of Revenue has a 24-hour tip line for anyone who suspects that a person or business is violating Minnesota tax laws. Local callers may dial 651-297-5195 or call toll-free by dialing 1-800-657-3500. Tips can also be submitted to the department by email at [email protected]. Tipsters may choose to remain anonymous.