The Minnesota Department of Revenue announced that the Hennepin County Attorney’s Office recently charged Adam John Skoog of Corcoran with 15 tax-related felonies.
Skoog is charged with five counts of making retail sales after revocation of a permit, five counts of failing to file sales tax returns, and five counts of failing to pay sales taxes.
According to the complaint, in August 2008, the Minnesota Department of Revenue revoked the sales tax permit for Skoog’s business, Marine Audio Customs LLC, after he failed to file several quarterly sales tax returns and failed to pay the company’s outstanding sales tax liabilities. Department investigators, the complaint states, determined that Mr. Skoog continued to do business while his sales tax permit was revoked, using alternate business names, such as Skoog Designs LLC. The complaint further alleges that from 2010 through 2014, although his permit was revoked, Mr. Skoog charged his clients sales tax for the products and services he provided, but failed to file returns and failed to remit the state and local sales taxes he collected.
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.