The Minnesota Department of Revenue announced that the Polk County Attorney’s Office recently charged Mary Margaret Kramer, of McIntosh, with one felony count of theft and one gross misdemeanor count of failing to file an individual income tax return.
According to the complaint, Ms. Kramer owns a sanitation company named Bacon’s Dray Sanitation. In operating the business, the complaint states that Ms. Kramer collected the Solid Waste Management Tax (SWMT) from her customers, but did not send the collected tax to the state, as required by law, for multiple periods in 2017 and 2018. According to the complaint, Ms. Kramer stole over $72,000 in SWMT tax from the state, and with penalties, late fees, and interest added she owes over $90,000. Additionally, the complaint states that Ms. Kramer failed to file her 2017 individual income tax return and owes over $18,000 in income tax.
The Solid Waste Management Tax is a trust tax similar to a sales tax. Customers pay the tax with the understanding that the business will send the tax to the state on their behalf.
The felony theft charge carries a maximum penalty of 20 years in prison, a $100,000 fine, or both. The tax-related gross misdemeanor charge carries a maximum penalty of one year in jail, a $3,000 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.
