By William Morris

Owatonna People’s Press

OWATONNA — The former owners of an Owatonna tanning salon have landed in court over reported unpaid taxes.

Michael Tapp, 44, and Sheridan Tapp, 40, of Blooming Prairie both are charged with eight felony counts and three misdemeanor counts of failure to file, report, pay or collect taxes. The felony charges carry up to five years and $10,000 apiece, and one year and $3,000 each for the misdemeanors. Both Tapps made first appearances Monday in Steele County court.

The complaint notes that the Minnesota Department of Revenue (DOR) Criminal Investigation Division began investigating the Tapps, then owners of the Tapp The Sun tanning salon in Owatonna, in 2011 for providing taxable services and collecting taxes that were not submitted to the state. DOR records showed Sheridan Tapp was sole owner of the business, although other state records listed Michael Tapp as co-owner of the business. The business was registered in 2004.

Between 2007 and 2011, DOR sent more than 60 letters to the Tapps requesting they file tax returns and pay delinquent taxes. In 2012, the Tapps filed some sales tax returns but have not paid the delinquent taxes to date, which the complaint lists at more than $45,500 as of Dec. 31, including interest and penalties. Investigators visited the business and confirmed the Tapps were collecting sales tax for their services that was not being paid to the state.

At one point, Sheridan Tapp told DOR representatives she thought the returns had been filed, and shortly thereafter did so, but the delinquent taxes were not paid. In a later phone interview, she acknowledged she was required to pay sales tax to the state and said she had probably used the sales tax collected to pay bills.

Sheridan Tapp also reportedly did not file state income tax returns in 2009 and 2010, and still has not done so several years after investigators first spoke to her about it. From those two years, she owes more than $29,000 in personal taxes, according to the complaint.

Tapp The Sun closed and was purchased in 2013 by Haute Tanning, which today operates the Frontage Road West salon as a second Owatonna location. The complaint does not mention the sale, but DOR Senior Media Specialist Ryan Brown said the unpaid taxes listed in the complaint remained the responsibility of the former owners.

“The charges and the amount owed is on the two of them and not anyone else,” he said.