Milaca man charged with multiple tax crimes

ST. PAUL, Minn. – The Minnesota Department of Revenue announced that the Mille Lacs County Attorney’s Office recently charged Richard Otten, of Milaca, with six felony counts of failing to file individual income tax returns and six felony counts of willfully failing to pay income tax.

The complaint states that Mr. Otten failed to file individual income tax returns or pay income tax for tax years 2019 through 2024 despite earning taxable income through his business, Rick’s Drywall Inc. The complaint alleges that Mr. Otten has a long history of failing to file his income tax returns and has received more than 25 letters from the department about his tax obligation. The complaint states that Mr. Otten knew of his tax filing requirements due to communication with department investigators as well as compliance actions, including tax liens, taken against him. Mr. Otten allegedly owes more than $92,000 in income 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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