North St. Paul man charged with multiple tax crimes 

ST. PAUL, Minn. – The Minnesota Department of Revenue announced that the Dakota County Attorney’s Office recently charged Empress Malcom Watson Jr., of North St. Paul, with two felony counts of filing false or fraudulent individual income tax returns, one count of failing to file individual income tax return, and three counts of failing to pay income tax. 

According to the complaint, department investigators began looking into Mr. Watson’s tax history after receiving a tip related to a separate criminal investigation of his significant other. The complaint states that in tax years 2020 through 2022, Mr. Watson earned over $1 million for work he did as an employee of his significant other’s business as well as work his own remodeling company did for that business. This money is considered taxable income in Minnesota. During that time, Mr. Watson allegedly spent over $680,000 on travel, jewelry, and vehicles or by making cash withdrawals or transfers to other financial accounts. The complaint states that for tax years 2020 and 2021, Mr. Watson significantly underreported his taxable income by hundreds of thousands of dollars and failed to file a return or pay any income tax in 2022. Mr. Watson allegedly owes over $64,000 in income tax.  

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. 

Get the latest news and updates from the Minnesota Department of Revenue by following the department on Facebook, Instagram, and on X (formerly Twitter) or by signing up for our email subscription list.