The Minnesota Department of Revenue announced that the Ramsey County Attorney’s Office recently charged Jason Edward Reinke of Moorhead with five felony counts of failing to file sales and use tax returns and four felony counts of failing to file individual income tax returns.
According to the complaint, Mr. Reinke is the owner and operator of Extreme Motorsports. This business sells new and used parts and accessories for jet-skis, ATVs, motorcycles, and other recreational vehicles. Despite its website claiming to have been in business for over 20 years, the complaint alleges that the business never filed a sales and use tax return despite making taxable sales. The complaint states that the business did not remit sales tax for multiple periods between 2017 and 2021. Mr. Reinke allegedly earned enough income to be required to file individual income tax returns for tax years 2017-2020. Still, he failed to do so despite telling department investigators that he was aware of his income tax liability. Mr. Reinke allegedly owes more than $106,000 in individual income and sales taxes.
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.
