ST. PAUL, Minn. – The Minnesota Department of Revenue announced that the Mower County Attorney’s Office recently charged Craig Allen Jacobson, of LeRoy, with 10 felony counts of failing to file withholding tax returns, 10 felony counts of failing to pay withholding tax, 4 felony counts of filing false or fraudulent individual income tax returns, and 1 felony count of filing a false withholding tax return.

The complaint states that for multiple quarters from 2015 through 2018, Mr. Jacobson failed to file withholding tax returns or pay withholding tax for his tax preparation businesses, M&I Tax and Accounting Inc. and C&C Tax Service, Inc. Mr. Jacobson failed to file these withholding returns or pay withholding tax despite the taxes being withheld from his employees’ wages. The complaint further alleges that by altering his already submitted federal tax returns when submitting his state returns, Mr. Jacobson filed four individual income tax returns he knew to be false or fraudulent for tax years 2015 through 2018.

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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