ST. PAUL, Minn. – The Minnesota Department of Revenue announced that the Ramsey County Attorney’s Office recently charged John William McPherson, of Sauk Rapids, with four felony counts of filing false or fraudulent individual income tax returns.

The complaint states that Mr. McPherson filed false income tax returns for tax years 2015 through 2018, by overstating his earned income so he could claim the maximum refund from the federal Earned Income Tax Credit and the state Working Family Credit. In 2015 he allegedly claimed to earn $10,000 more than what his W-2 from his only known employer showed. For 2016 through 2018, he allegedly claimed earned income from employers who had no record of employing him. Each year, the complaint alleges, Mr. McPherson claimed a credit that was greater than the state income tax he owed and that he was thus entitled to a refund. The complaint states that Mr. McPherson owes more than $14,300.

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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