Chisago City couple charged with multiple tax crimes 

ST. PAUL, Minn. – The Minnesota Department of Revenue announced that the Chisago County Attorney’s Office recently charged Michael James Marx Jr. and Chasteen Marie Marx, both of Chisago City, with four felony counts each of filing false or fraudulent individual income tax returns and four felony counts each of filing false or fraudulent property tax refund returns.

Investigators began looking into the Marxes by creating an income tax deficiency estimate based on their real estate, financial, and banking information and comparing it to the income they reported on their jointly filed tax returns. Investigators allegedly determined that the Marxes underreported their income and overreported their expenses on their income tax returns for tax years 2018 through 2021. Notably, the complaints state that their reported income would not be enough to pay for their mortgage and cabin costs for the years in question, let alone other expenses such as vehicle loans, food, utilities, and credit card payments.

The Marxes also filed property tax refund returns using underreported amount of incomes for tax years 2018 through 2021, when their actual income would either reduce the amount of the refund or make them ineligible altogether for a refund. 

The Marxes allegedly owe more than $48,000 in income and property taxes, 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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