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Milaca Couple Receives 3 Felonies Each For Tax Crimes

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ST. PAUL — A Milaca couple is being charged with tax crimes resulting in three felonies each.

The Minnesota Department of Revenue says 58-year-old Linda Rother and her husband, 59-year-old David Mormann failed to pay sales tax on their photography business.

Rother ran Studio One Portraits and defaulted on her payment plans with the department of revenue. Her sales tax permit was taken away in 2010 but she kept operating her business–a crime in Minnesota.

In 2011 Rother made more than $100,000 in taxable sales using another business name, Digital Hot Shots. She didn’t file a sales tax return for that year. She collected the tax from her customers but didn’t pay it to the state.

Rother owes the state an estimated $50,000. She’s being charged with one count of making sales without a permit after the permit was revoked, one count of failing to file a return and one count of failing to pay taxes.

Mormann is charged with one count of aiding and abetting sales without a permit after the permit was revoked, one count of failing to file a return and one count of failing to pay taxes.

Each charge caries a maximum penalty of up to five years in prison and up to a $10,000 fine.

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