REVENUE INVESTIGATION LEADS TO SURRENDER OF MADISON COUNTY
RESIDENT ON SALES/USE TAX EVASION CHARGES

NASHVILLE, Tenn. - Brian John Schaffer surrendered himself for arrest yesterday to authorities at the Madison County Sheriff's Office. A writ was issued for Schaffer's arrest after the Madison County Grand Jury returned a two-count sealed indictment relating to evasion of sales/use tax due the state of Tennessee. During yesterday's arraignment, Schaffer pled not guilty to the charges. Bond was set at $14,000.

"The Department of Revenue promotes voluntary taxpayer compliance by educating taxpayers, aggressively pursuing criminal sanctions and demanding accountability when taxpayers engage in fraudulent activity," said Revenue Commissioner Loren L. Chumley. "This investigation underscores the department's ongoing efforts to enforce Tennessee's tax laws."

The investigation was conducted by the Special Investigations Section of the Tennessee Department of Revenue. Schaffer was indicted by the Madison County Grand Jury on April 4, 2005, on two counts of failing to pay sales/use tax to the state of Tennessee . This is in violation of Tenn. Code Ann. Section 67-1-1440(d).

If convicted of the charges, Schaffer could be sentenced to a maximum of two years in the state penitentiary and fined $3,000 for each of the two counts.

These cases are pursued criminally by the department in cooperation with local district attorneys general.

Citizens who suspect violations of the Tennessee revenue laws should call the toll-free tax fraud hot line at (800) FRAUDTX (372-8389).

The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2003-2004 fiscal year, the department collected $9.1 billion in state taxes and fees. In addition to collecting state taxes, $1.6 billion of local sales tax was collected by the department for local governments during the 2003-2004 fiscal year. Besides collecting taxes, the department enforces the revenue laws fairly and impartially in an effort to encourage voluntary taxpayer compliance. The department also apportions revenue collections for distribution to the various state funds and local units of government. To learn more about the department, log on to www.Tennessee.gov/revenue.

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