Couple who owe more than $43K in taxes sentenced in Granite Falls
GRANITE FALLS -- A husband and wife accused of not paying income taxes on compensation totaling $571,379 from 2002 through 2007 were sentenced July 30.
Robert James Cunningham, 43, of Wood Lake, pleaded guilty in district court in Granite Falls to a misdemeanor count of failing to file a tax return and a gross misdemeanor count of failure to pay or collect taxes.
The court sentenced him to one year in prison on the gross misdemeanor charge, but stayed execution of the sentence for five years provided he serve supervised probation, pay fines and fees of $585, and make restitution as to be determined.
The court sentenced him to one year in jail on the lesser charge, but stayed execution and allowed that it be served concurrent with the other sentence.
Ann Marie Cunningham, 43, of Wood Lake, pleaded guilty to a misdemeanor charge of failure to file a tax return. The court withheld adjudication of the charge and ordered her to serve one year of probation that requires she pay $85 in fines and fees and make restitution as to be determined. Because adjudication was withheld, if she complies with sentencing conditions, the conviction will not appear on her record.
The original complaint charges that Robert Cunningham had not paid taxes during the years 2002-2007 while receiving compensation from two different trucking firms and a farmer's cooperative. It alleges that he provided his mother's Social Security number to one of the employers and no Social Security number to another during this time.
An investigation was launched when the defendant's mother contacted the Yellow Medicine County Sheriff's Department. She reported that the Internal Revenue Service had contacted her and said records showed she had not paid taxes on compensation of $133,756.56 received from a trucking firm in 2006 and 2007. She learned that her son had earned that amount of compensation from the trucking firm while using her Social Security number on his employee form.
She told investigators that he had used her Social Security number in the 1990s. When contacted by her about the most recent IRS report, the mother told authorities that he told her that he "did not pay taxes and never will."
The complaint charges that the Minnesota Department of Revenue calculated that the Cunninghams owe $43,847.72 in taxes, penalties and interest for the years 2002-2007.