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Prison next for tile company owner who dodged $500k-plus in taxes

By PAUL WALSH, Star Tribune

Last update: May 9, 2008 - 12:05 AM

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Dodging more than $500,000 in federal taxes now means two years in prison for a Minnesota businessman.

Scott M. Tovey, owner of Tovey Tile Co. in Medina and Minnetonka, was sentenced Wednesday  after pleaded guilty to failing to account for and pay taxes to the IRS totaling $574,485.70 from 1999 through late 2003.

"You stole a lot of money," U.S. District Judge Paul Magnuson told Tovey, 40, of Elk River. "We trust citizens to do the right thing -- pay their taxes. The government needs to enforce the law.

"When you don't pay taxes, you pay the price."

According to a plea agreement, Tovey deducted federal income taxes and Social Security taxes from his employees' wages but did not pay the taxes to the IRS. Tovey was advised by his accountant to pay back taxes in 2003 but failed to do so. The accountant then terminated his professional association with Tovey, according to the plea agreement.

Paul Walsh • 612-673-4482

 
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