Date: February 15, 2023 Contact: newsroom@ci.irs.gov A Duluth couple has been charged with conspiracy and tax fraud after failing to pay taxes on their nail salon business income, announced U.S. Attorney Andrew M. Luger. According to court documents, An Ngoc "Ritchie" Nguyen was the operator and sole proprietor of Q Nails salon located in Duluth. Tram Anh "Ann" Nguyen was the operator and sole proprietor of Crystal Nails salon located in Superior, Wisconsin. From at least 2016 through at least October 2020, the defendants unlawfully conspired with each other and others to defraud the Internal Revenue Service by reporting on their individual income tax returns only the credit card sales, or including a false, nominal amount of cash sales, from their Q Nails and Crystal Nails salons. The defendants also falsely claimed to reside at two different addresses and agreed to divide their three children—with whom they jointly resided—as dependents in order to fraudulently claim head of household status on both of their individual income tax returns. Ritchie Nguyen is charged with one count of conspiracy to defraud the United States and four counts of making and subscribing a false tax return. Ann Nguyen is charged with one count of conspiracy to defraud the United States and three counts of making and subscribing a false tax return. The defendants are scheduled to make their initial appearances in U.S. District Court on March 7, 2023, before Magistrate Judge Leo I. Brisbois in Duluth. This case is the result of an investigation conducted by IRS – Criminal Investigation. Assistant U.S. Attorney Kimberly A. Svendsen is prosecuting the case.
