The operators of J.L. Kosbab Co. — 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 last month.
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.
For tax year 2006, Jerome reported W-2 wages of $24,000. Linda reported trust income of $9,700 and casino winnings of $1,200. Their federal gross income was $134,000.
For tax year 2007, Jerome reported W-2 wages of $23,000. Linda reported trust income of $10,500 and casino winnings of $2,700. Their federal gross income was $146,000.
For tax year 2008, Jerome reported W-2 wages of $24,000. Linda reported trust income of $8,400 and casino winnings of $6,800. Their federal gross income was $303,000.
After filing these income tax returns in January 2010, the couple owed the state $3,600 for 2006, $6,300 for 2007 and $18,700 for 2008. They paid these amounts in March 2010.
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.