Prior Lake tax preparer charged with 42 tax crimes 

ST. PAUL, Minn. – The Minnesota Department of Revenue announced that the Scott County Attorney’s Office recently charged Kraig Joseph Haenke, of Prior Lake, with 42 felony counts of aiding or assisting in the preparation of false or fraudulent individual tax returns.

According to the complaint, Mr. Haenke has been a licensed Certified Public Accountant since 2007, and understands that as a tax preparer, he is responsible for filing accurate tax returns. The complaint alleges that Mr. Haenke filed multiple tax returns for his clients between 2019 and 2023 that contained information that he knew was false. According to the complaint, department investigators determined that multiple returns that Mr. Haenke submitted on behalf of his clients contained the same numbers being used for expense deductions year over year for the same taxpayer and the same specific numbers reoccurring across all the filed returns for multiple taxpayers. Other deductions such as non-cash charitable donations and home office deductions were allegedly found to be at the max deduction or at thresholds where additional documentation is required. 

Department investigators interviewed 12 of his clients who all stated that they did not provide Mr. Haenke records or information for one or more items that were found on their returns.

A review of all returns filed by Mr. Haenke for tax years 2019 through 2021 found statistically improbable commonalities across all returns. Mr. Haenke allegedly admitted that he was overwhelmed and rushing through return preparation.

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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