News Release: Savage restaurant owners charged with tax crimes

 

 

For immediate release:

May 16, 2013

 

Contact: Lisa Erickson

Phone: 651-556-6397

Lisa.erickson@state.mn.us

 

Savage restaurant owners charged with tax crimes

ST. PAUL, Minn. – The Minnesota Department of Revenue announced that the Scott County Attorney’s Office recently charged Timothy Falkenberg, 46, and Rochelle Falkenberg, 42, with three tax felonies each.

The Falkenbergs have each been charged with one count of failing to pay sales and use tax, one count of failing to file sales and use tax returns, and one charge of making sales after revocation.

According to the criminal complaints, Paradise Pizza and Grill, Inc., was opened by the Falkenberg’s in 2007. They filed sales tax returns for periods in 2007, stating they did not collect any sales tax. They never filed another sales tax return or paid sales tax beyond this point.

The department sent more than forty letters to the owners demanding they file returns but never received a response.

In 2010, the business’s sales tax permit was revoked but the owners continued making retail sales.

The department estimates the Falkenberg’s owe the state more than $106,000 in sales tax, penalty and interest.

The charges each carry a maximum penalty of up to five years in prison and up to a $10,000 fine.

The Minnesota Department of Revenue has a 24-hour tip line for anyone who suspects an individual or business is violating tax laws. That number is 651-297-5195, or 1-800-657-3500 (TTY users call 711 for Minnesota Relay). Tipsters may remain anonymous and can also email the department at tax.fraud@state.mn.us. In 2012, citizen tips totaled 80 percent of the department’s criminal case referrals.

While most taxpayers comply with tax laws voluntarily, the Minnesota Department of Revenue takes progressive enforcement action against non-compliant taxpayers ensuring tax laws are fairly administered, collecting no more and no less than taxpayers owe.

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