2005 News Releases
For Immediate Release: May 12, 2005
REVENUE INVESTIGATION RESULTS IN CONVICTION OF
MADISON COUNTY RESIDENT ON SALES/USE TAX EVASION CHARGES
NASHVILLE, Tenn. - The Tennessee Department of Revenue's Special Investigations Section conducted the investigation that led to yesterday's conviction of Brian J. Schaffer for evasion of sales/use tax. Schaffer pled guilty to two Class E Felony counts of failure to pay the correct sales/use tax, a violation of Tenn. Code Ann. Section 67-1-1440(d).
This conviction is a result of the Department of Revenue's ongoing efforts to encourage voluntary compliance with vehicle and boat registrations by Tennessee residents at county clerks' offices. Sales tax is collected by the clerk when vehicles or boats are bought by residents from individuals in Tennessee. Use tax is collected by the county clerk when Tennessee residents purchase vehicles and boats from outside of Tennessee and bring them into Tennessee. The tax in either scenario is calculated based on the purchase price.
On May 11, 2005, Madison County Circuit Court Judge Roger A. Page accepted Schaffer's guilty plea and sentenced him to two years probation and fined him $150. Page also ordered Schaffer to perform 100 hours of community service. Schaffer is required to pay $12,562 of restitution to Tennessee within 10 days. The Department of Revenue also will seek additional civil fines and penalties from Schaffer.
"The Department of Revenue takes fraudulent tax activity seriously and will continue to investigate such cases and collect all taxes due the state of Tennessee," said Revenue Commissioner Loren L. Chumley. "We need auto and boat owners and county clerks' assistance to ensure this tax is administered equally and fairly."
The department pursues criminal cases in cooperation with local district attorneys general.
Chumley encourages all citizens who suspect violation of the Tennessee revenue laws to 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.TN.gov/revenue.
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