A West St. Paul woman who runs the DD's Deli in St. Paul's skyway system has been charged in Ramsey County District Court with 15 counts of failure to file tax returns and failure to pay state income taxes.
The charges against Nancy Lee Grote, 53, are felonies. According to the complaint, she told an investigator that "she did not believe she had to file because she didn't make enough money."
The document said the state Department of Revenue received an anonymous tip on March 2 that Grote hadn't filed tax returns since she opened the business in 2001. It is in the Alliance Bank Center at 56 E. 5th St.
An investigator said that when she bought a vegetable tray there on March 11 and asked for a receipt, Grote gave her a hand-written one, saying she didn't have a cash register, the complaint said.
The property management company said Grote stopped reporting her income to them in 2004 but continued to operate the business. According to reports from the leasing company, Grote reported sales of more than $52,000 in 2002; $36,000 in 2003; $44,000 in 2004, $43,000 in 2005, and $51,000 in 2006.
The complaint said Grote deposited her business income in her personal account, a ploy "used by tax evaders in an effort to hide money."
The complaint said that Grote has paid state sales tax but that the amount does not match the sales figures from the leasing company. The complaint also said Grote has not paid any federal income tax since before 2002.
The deli was still open as of Wednesday, but Grote could not be reached to comment. She is scheduled to appear in court Sept. 8.
