Chanhassen man charged with multiple tax crimes

ST. PAUL, Minn. – The Minnesota Department of Revenue announced that the Carver County Attorney’s Office recently charged Paul Mark Carlson, of Chanhassen, with multiple tax-related felonies. Mr. Carlson is charged with six felony counts of failing to file individual income tax returns, six felony count of failing to pay sales tax, and six felony counts of failing to file corporate franchise tax returns.

According to the complaint, Mr. Carlson is the owner of Vic’s Blue Dog Restaurant, d/b/a Vic’s Bar & Grill, located in Victoria, MN. The business is an S-Corporation required to file yearly corporate franchise tax returns as well as report all income and losses on the owner’s individual income tax returns. The complaint alleges that Mr. Carlson failed to file his individual income tax returns and his S-Corporation tax returns for tax years 2015 through 2020. The complaint further alleges that Mr. Carlson failed to remit sales tax collected by his business during those years. Mr. Carlson allegedly told department investigators that he knew of his obligation to file Minnesota income taxes but did not have a reason as to why he did not file his tax returns. According to the complaint, Mr. Carlson owes over $440,000 in 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 tax.fraud@state.mn.us. Tipsters may choose to remain anonymous. 

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