ST. PAUL, Minn. – The Minnesota Department of Revenue announced that the Hennepin County Attorney’s Office recently charged Jerone Ian Mitchell and Sherita Annmichelle Mosely-Coats, both of Minneapolis, with multiple tax-related felonies. Mr. Mitchell is charged with four felony counts of failing to file income tax returns, five felony count of failing to pay income tax, five felony counts of failing to file corporate franchise tax returns, and one felony count of filing a false or fraudulent individual income tax return. Ms. Mosely-Coats is charged with five felony counts of failing to file income tax returns, five felony count of failing to pay income tax, and five felony counts of failing to file corporate franchise tax returns

According to the complaints, Mr. Mitchell and Ms. Mosely-Coats are corporate officers for Universal Construction Inc., an S-Corporation required to file yearly corporate franchise tax returns. The complaints allege that they both failed to file corporate franchise tax returns for the business for tax years 2015 through 2019. Ms. Mosley-Coats allegedly failed to file individual income tax returns and pay income tax on income earned through the business for tax years 2015 through 2019. Mr. Mitchell allegedly failed to file individual income tax returns in 2015 and 2017 through 2019, filed a false or fraudulent return in 2016, and failed to pay income tax on income earned through the business for tax years 2015 through 2019. According to the complaints, Mr. Mitchell owes over $165,500 in income tax while Ms. Mosely-Coats owes nearly $173,000 in income 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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