West St. Paul Tax Pro Filed Returns For Unknowing Kids: Charges

The Dakota County Attorney’s Office has charged tax professional Melissa Marie Johnson with three tax-related felonies. Johnson was charged with one felony count of knowingly preparing tax returns that were fraudulent or false, one count of identity theft, and one count of theft by swindle.

According to the complaint, police received calls from two people claiming that Johnson, a tax preparer working in West St. Paul in 2017, filed income tax returns without their knowledge and put the refund money onto prepaid American Express cards under her control.

The Minnesota Department of Revenue began auditing returns prepared by Johnson for tax year 2016. Authorities say the found fraud where Johnson filed returns in the names of unknowing victims, including some children, and put the refunds onto AmEx cards she controlled.

According to the complaint, investigators found fraudulently issued AmEx cards during the execution of a search warrant in Johnson’s home.

Authorities say Johnson told police that she would make up names and Social Security numbers, or use the names and Social Security numbers of dependents from other returns, to get refunds and increase the incentive bonuses she received from the tax preparation company she worked for.

Johnson admitted to filing fraudulent returns, tracking refunds, and withdrawing funds from the fraudulently obtained AmEx cards, according to the complaint. Each tax-related felony charge carries a maximum penalty of five years in prison, a $10,000 fine, or both.

The theft by swindle and identity theft charges carry a maximum penalty of 10 years in prison, a $20,000 fine, or both.

Although the department does not certify tax preparers, state law requires tax professionals who prepare income tax returns to follow standards of ethics and conduct.

When a tax professional does not comply with these standards, they may be subject to penalties or criminal prosecution and may be barred from representing clients before the department.

Taxpayers can report unprofessional conduct by contacting the Department of Revenue at (651) 296-3781.

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