Otsego cleaning business, and others charged with multiple tax crimes
ST. PAUL, Minn. – The Minnesota Department of Revenue announced that the Ramsey County Attorney’s Office recently charged Kelly Lynne Kiffmeyer, of Otsego, with three felony counts of filing known false or fraudulent sales tax returns, and her business, Kelly Kiffmeyer Inc., d/b/a Krispy Clean Restoration, with three felony counts of willfully failing to pay or collect sales tax. The Ramsey County Attorney’s Office also charged Brian Roger Posch, of Plymouth, with three felony counts of knowingly aiding or assisting with the filing of false or fraudulent sales tax returns.
According to the complaints, Mr. Posch owned and operated a cleaning service, Krispy Clean Inc., until his sales tax permit was revoked in 2012 for chronically underreporting and underpaying sales tax. Mr. Posch still allegedly owes over $400,000 in unpaid taxes, penalties, and interest in relation to his business.
About a year after Mr. Posch’s sales tax permit was revoked, Ms. Kiffmeyer’s business, Kelly Kiffmeyer Inc., allegedly filed a certificate of assumed name of Krispy Clean Restoration, a company offering similar services to Mr. Posch’s former business. The complaints state that through bank account information and contacts with former customers, department investigators determined that Mr. Posch was regularly involved in the business -- doing the work, providing estimates, and communicating with customers and insurers. According to the complaints, Kelly Kiffmeyer Inc., filed false annual sales tax returns in 2017, 2018, and 2019, substantially underreporting its taxable sales each year. The complaints state that Ms. Kiffmeyer and the business owe more than $20,500 in sales tax, penalties, and interest.
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 firstname.lastname@example.org. Tipsters may choose to remain anonymous.