MINNEAPOLIS – As this year’s tax filing season comes to an end, the U.S. Attorney’s Office and the Internal Revenue Service’s Criminal Investigation Division urge all taxpayers to file correct and accurate tax returns by the Monday, May 17 deadline. Due to COVID-19, the original filing deadline and tax payment due date was postponed from April 15 to May 17. For people facing hardships, including those affected by COVID-19, who cannot pay in full, the IRS has several options available on IRS.gov/payments.
“As the May 17 deadline approaches, Minnesotans should remain vigilant and take care to protect their personal information. Remember, the IRS will not contact you by phone, email, or social media,” said Acting U.S. Attorney Anders Folk. “Scammers, fraudsters and predatory tax preparers looking to take advantage of law-abiding taxpayers will be held accountable.”
“I am asking all citizens to file correct and accurate tax returns and to pay their share of taxes,” says Tamera Cantu, Acting Special Agent in Charge of the IRS Criminal Investigation Division Chicago Field Office, who oversees the state of Minnesota. “We all pay when others cheat the government. IRS Criminal Investigation, together with the U.S. Attorney’s Office, works year-round to make certain that those who willfully defy the tax laws will be investigated and criminally prosecuted. Taxpayers are encouraged to visit the IRS.gov website for tips on filing a tax return accurately and searching for a reputable return preparer.”
The following court actions serve as a reminder to taxpayers, to think before filing a false or fraudulent tax return and to be wary of any schemes that falsify your income or deductions.
In November 2020, Muhumed Ali and Faysal Sayid were sentenced to prison for income tax evasion. Ali and Sayid were also ordered to pay a total of more than $1 million in restitution to the IRS. Ali and Sayid were co-owners of a company that provided adult day care services to individuals enrolled in the Minnesota Medicaid program. Between 2012 and 2014, Ali and Sayid removed approximately $1.3 million from the company’s operating accounts and used those funds to pay for personal, non-business expenses, such as clothing, rent for personal residences, vehicles, funds transfers to other parties, and international wire transfers. Ali and Sayid willfully attempted to evade and defeat income taxes due and owing on that money for tax years 2012, 2013, and 2014. This case was prosecuted by Assistant U.S. Attorney Matthew S. Ebert.
In March 2021, Daren Wradislavsky pleaded guilty to one count of making and subscribing a false return. According to his guilty plea, Wradislavsky was the general manager of a hotel in Owatonna, Minnesota, and was exclusively responsible for the employee payroll. For tax years 2014 through 2017, Wradislavsky included commissions and mileage reimbursement amounts on his personal paychecks but failed to report more than $350,482 in reimbursements on his individual income tax returns. This case is being prosecuted by Assistant U.S. Attorney Angela M. Munoz.
In April 2021, Shoua Isabelle Yang, the owner and operator of a staffing agency, was indicted on 13 counts of filing a false employer’s quarterly federal tax return and four counts of filing a false United States corporation income tax return. According to the allegations in the indictment, during tax years 2015 through 2018, Yang, employed workers but caused her staffing agency not to properly withhold, account for and pay over accurate payroll taxes, including federal income taxes and Social Security and Medicare taxes. This case is being prosecuted by Assistant U.S. Attorney Matthew S. Ebert. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
In April 2021, Gospel Kordah pleaded guilty to one count of preparation of a false individual income tax return. According to his guilty plea, Kordah prepared tax returns on behalf of his clients that falsely and fraudulently represented, among other things, that the taxpayers incurred deductible medical and dental expenses. Kordah also prepared false and fraudulent income tax returns on behalf of himself and his wife. Kordah prepared and filed approximately 68 false tax returns seeking a total of approximately $237,432 in fraudulent federal and state income tax returns. This case is being prosecuted by Assistant U.S. Attorneys Allison K. Ethen and Kimberly A. Svendsen.