One Minnesotan is in big trouble this tax season — accused of underreporting his personal and business income by nearly $2 million and withholding more than $186,000 in unpaid taxes.

Andrew Clayton Freeburg, 45, of Norwood Young America, faces charges of tax evasion and fraud between 2020 and 2024. But it’s not the first time he’s been charged (1).

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Freeburg already pleaded guilty to tax fraud in 2024. The case raises questions about tax crime and enforcement in the U.S.

The Minnesota Department of Revenue’s charges against Freeburg are extensive. Investigators (2) allege that he filed fraudulent tax returns and in one case failed to file a tax return altogether.

As CBS News (3) reports, investigators add that Freeburg falsely registered his business, E-Motors, in his elderly father’s name and spent business funds on personal things like a gym membership, travel and more.

On top of that, they allege that Freeburg fraudulently collected government benefits — $40,000 worth of medical assistance and Supplemental Nutrition Assistance Program (SNAP) benefits between 2022 and 2025.

All told, they estimate he owes more than $186,000 in unpaid taxes.

So how common is tax fraud and what is being done about it?

Here’s a look at the scale of the problem and how to avoid getting on the wrong side of the law with the taxman.

Last year, IRS (4) investigators uncovered $4.5 billion in tax fraud — more than 40% of the total $10.59 billion in financial crimes they discovered in 2026.

It should be noted that much of this tax fraud involves scams (5), such as fraudsters posing as IRS representatives, stealing money from vulnerable Americans.

When it comes to Americans committing tax evasion and illegally withholding tax, such cases are rare.

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In 2024, the U.S. Department of Justice convicted a total 360 individuals of such offenses across the entire country. Of those, 66% went to prison (6).

The majority of cases involved amounts between $100,000 and $1.5 million — with a medium loss of $491.302.

Still, at a time when the demand for financial accountability is high, federal and state authorities are cracking down.

CBS News reported that Minnesota Gov. Tim Walz has launched an initiative to crack down on fraud — including tax and SNAP fraud — in the state, appointing Tim O’Malley the Director of Program Integrity there.

In 2023, The New York Times (7) reported that the IRS was using artificial intelligence (AI) to root out tax evasion, targeting private equity groups, hedge funds, law firms and real estate investors.

While genuine mistakes can trigger audits and demands for repayment, most Americans can rest easy that slip-ups won’t land them in front of a judge.

Still, it’s good to avoid mistakes. Here are some tips.

In order to make sure your taxes are accurate, the IRS says you should avoid:

Filing too soon, before you have received all your related tax documents in the mail.

Submitting your tax return without carefully reviewing it first.

Misspelling or mistyping names, Social Security numbers and other info.

Submitting a return without signing it, as an unsigned return is invalid.

Completing your return without reading up on new credits and deductions, as this can alter how your income tax is calculated.

As taxes fund everything from roads, schools and programs like Social Security, governments are watching to make sure everyone is paying in.

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MN Crime (1); Minnesota Department of Revenue (2); CBS News (3); IRS (4); IRS (5); U.S. Sentencing Commission (6); New York Times (7)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.