Internal Revenue Service and FBI agents searched the accounting business owned by Stillwater Mayor Ken Harycki on Thursday morning.
Federal officials said the agents participated in an enforcement action at Customized Payroll Solutions in Stillwater. The company provides businesses across the Twin Cities metro area with payroll, taxes and human resources services, according to its website.
An IRS spokesperson confirmed that agents were engaged in "official business." The spokesperson said federal law limits the information the agency can provide about active investigations into taxpayers.
The FBI confirmed that its agents also assisted in the action.
Stillwater Police Chief John Gannaway said the IRS requested police support for the action, but his office referred it to the Washington County Sheriff's Department to avoid a conflict of interest.
Harycki is a former Stillwater City Council member, and has served as mayor since 2007.