For those of us in Minnesota who don't deal with taxes on an everyday basis, we can sometimes become confused regarding all the different types of taxes that exist. Federal income tax, state income tax, property tax, capital gains tax, unemployment tax, sales tax, franchise tax, excise tax and deed transfer tax -- to name a few.
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.
Minnesota is home to a significant Native American population and several reservations and Indian-run casinos. If you are confused as to how tribal lands and income relates to the Internal Revenue Service, you're not alone. According to a recent news article, not even the IRS may be clear on what they can and cannot tax.
When many of us get our tax refund from the Minnesota Department of Revenue we may pay a few bills, put it in the bank, or splurge a little. A 51-year-old Duluth businessman allegedly took the splurge route -- not by a little -- but "buy" a lot.
The more complicated a business transaction and business becomes, the more complicated the tax calculations are likely to become. This is a very good reason to consult with tax and legal professionals at tax time and throughout the year.