MN Tax Biz Owners Face Six Felony Charges

The owners of a tax preparation company in Zimmerman are accused of willfully evading taxes and failing to pay taxes.

The operators of J.L. Kosbab Company-a Zimmerman-based tax preparation, accounting, and payroll administration business-have been charged with six felony tax crimes each, the Minnesota Department of Revenue announced Friday.

Jerome Kosbab, 62, and Linda Kosbab, 60-both from Zimmerman-have been charged by the Sherburne County Attorney's Office with three counts of willful evasion of taxes and three counts of failing to pay taxes.

The Kosbabs allegedly failed to pay their taxes for the tax years 2006 through 2008.

Jerome, who is a tax preparer for the company, admitted that he prepared his own income tax returns for those tax years but didn't file them because he had inadequate funds to pay for the taxes, according to the complaint. As a result, his 2006, 2007, and 2008 tax returns were not filed until January 2010.

According to the Department of Revenue, the Kosbabs' combined federal gross income for those three tax years totaled $583,000, and they reported a total of $110,300 in wages, trust income, and casino winnings. In March, they paid $28,600 in taxes that they owed to the state.

The Kosbabs face up to five years in prison, a fine of up to $10,000, or both, for each of the felonies with which they've been charged.