RED WING — The owners of a Red Wing bar will appear in court Sept. 26 facing a total of 18 charges of tax evasion.
Charges were filed Aug. 24 against Kelly Jean Anderson, 51, and Ricky Duane Anderson, 57, of Red Wing, owners of Kelly’s Tap House Bar and Grill located at 1530 Old West Main Street in Red Wing.
Kelly Anderson faces five counts of filing false or fraudulent sales tax returns, three counts of filing false or fraudulent income tax returns, and one count each of failing to file a state income tax return and failing to pay state incomes tax.
Ricky Anderson is facing three counts of aiding the filing of a false or fraudulent individual income tax return and five counts of aiding in the filing of a false or fraudulent sales tax return.
All charges are felonies.
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The Minnesota Department of Revenue stated investigators determined that, when compared to the revenue that was deposited into her business and individual bank accounts, Kelly Anderson appeared to be underreporting both the amount of income she received on her individual income tax returns and the amount of business sales on her monthly sales tax returns.
Furthermore, the restaurant was not entering all of its sales into its computer system, but was instead accounting for them on handwritten sales sheets. Meaning the business reported much less in sales on its sales tax returns and on Kelly Anderson’s income tax returns.
The fraudulent income tax returns cover the tax years 2012-2014, and Kelly Anderson failed to file her 2015 return, and failed to pay income tax that year, as well, the complaint states. She also allegedly filed false or fraudulent monthly sales tax returns for periods beginning September 2012 through December 2016.
Ricky Anderson was in charge of the day-to-day operations of the bar. The complaint states he made adjustments to Kelly Anderson’s income tax returns as they were being prepared by their accountant and he adjusted the total yearly sales for the restaurant that were included as part of her income.
The Department of Revenue alleges that Kelly Anderson owes more than $187,900 in individual income tax, penalties and interest. The business owes more than $183,800 in sales tax, penalties and interest.
Each charge carries a maximum penalty of five years in prison, a $10,000 fine or both.
