Charges: Owner of Victoria restaurant avoided taxes for six years, owes state $440K

The owner of a popular restaurant in downtown Victoria has been charged with numerous felonies on allegations that he failed to pay taxes for several years and now owes Minnesota more than $440,000, state officials said Monday.

Paul M. Carlson, 61, of Excelsior, owner of Vic's Bar & Grill, was charged in Carver County District Court with six counts each of failing to file individual income tax returns, pay sales tax and file corporate franchise tax returns.

Carlson was charged by summons and is scheduled to appear in court on Jan. 13. Messages were left seeking his response to the allegations. Court records do not list an attorney for him.

According to the criminal complaint:

Carlson failed to file his individual income tax returns and his corporate tax returns for tax years 2015 through 2020. He also failed to turn over to the state the sales tax collected by his business during those years.

The annual taxable revenue for the downtown restaurant, which sits south of Stieger Lake, was roughly $892,000.

He told state Department of Revenue investigators that he knew of his obligations but did not have a reason he declined to do so, other than to admit "getting further and further behind." He also acknowledged not filing federal returns for those years.

The more than $440,000 Carlson owes the state includes tax, penalties and interest.