A Hastings man was charged with three counts of aiding the preparation of fraudulent tax returns, according to a statement from the Minnesota Department of Revenue released Monday.
Jeffrey McKenzie, 59, the co-owner of 61 Marine & Sports, Inc. in Cottage Grove, allegedly withheld about $3.2 million in taxes, penalties and interest from the state the press release said.
An investigation by the MDOR began in 2018 after receiving information that the business was not reporting all of the sales tax it collected, according to the criminal complaint. The initial investigation found that it was likely that a large amount of sales tax was being underreported to the MDOR, the complaint said.
Authorities obtained search warrants and seized financial documents from the company. According to the complaint, the documents showed that sales figures did not match sales tax filings for multiple periods from January 2013 through September 2018.
The complaint states that it was McKenzie’s responsibility to provide the company’s sales tax information to their accountant, and claims that he knowingly underreported taxable sales for the business.
Tax-related felonies carry a maximum of five years in prison, a $10,000 fine or both, for each charge, the MDOR statement said.