ST. PAUL, Minn. – The Minnesota Department of Revenue announced that the Becker County Attorney’s Office recently charged Scott David Anderson and Jinlan Li, both of Hawley, with multiple tax-related felonies. Both are charged with:

• Six felony counts of failing to file sales and use tax returns
• Six felony counts of failing to pay sales and use tax
• Five felony counts of filing fraudulent individual income tax returns
• Five felony counts of failing to pay income tax on unreported income

Mr. Anderson is also charged with one felony count of filing a fraudulent property tax return.

According to the complaints, Mr. Anderson and Mrs. Li are married owners of Sunny Asian Health Massage and failed to file sales and use tax returns and pay sales tax between May 2015 and February 2020. The business was filed as a partnership in which the income is passed through and should be reported on the individual partner’s income tax return. The complaints state that the couple underreported income from their business on their individual income tax returns and failed to pay income tax on this unreported income for tax years 2015 through 2019. According to the complaints, it is estimated that the couple owes more than $119,000 in unpaid income and sales tax.

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 department takes enforcement action against noncompliant taxpayers to ensure that tax laws are administered fairly.

Many of the department’s criminal case referrals come from public tips. There is 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 tax.fraud@state.mn.us. Tipsters may choose to remain anonymous. 

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