An International Falls man is scheduled to be arraigned Tuesday on multiple counts of income tax evasion.
Michael J. Shermoen, 44, faces three charges of felony failure to file income tax, owing more than $40,000 in tax, penalties and interest, reports the Minnesota Department of Revenue.
The case was filed April 4 in Ramsey County District Court.
Court documents say Shermoen failed to file his individual income tax return each year from 2015 through 2017, that he admitted to investigators that he was aware of his obligation to file an income tax return each year and admitted to not filing returns in those years.
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.
Meanwhile, the complaint said that Shermoen had gross income in the three years well in excess of the minimum amount of about $10,400 that triggers the obligation to file an income tax return.
The complaint reports Shermoen had gross income in those years of $295,482 in 2015; $410,240 in 2016; and $373,578 in 2017.
It also said that Shermoen defaulted in 2013 on a payment plan for returns he did not file in 2010-2012.
The Minnesota Department of Revenue reports that many of its criminal case referrals come from public tips. The Minnesota Department of Revenue has 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 firstname.lastname@example.org. Tipsters may choose to remain anonymous.