About 60,000 people work in Minnesota and live in Wisconsin --primarily in the Hudson area. About 20,000 people work in Wisconsin and live in Minnesota --primarily in the Winona area. Recently these people have been filing two sets of income tax returns each year, one for each state, due to the breakdown in the reciprocity agreement.
Normally when one thinks of tax fraud, one thinks of big crooked deals cooked up by shady characters. One doesn't think of a 52-year-old woman in Duluth misstating her income by less than $7,000 over four separate tax years.