REVENUE INVESTIGATION LEADS TO SURRENDER OF CLEVELAND
BUSINESSMAN ON SALES TAX EVASION CHARGES

"The majority of businesses pay appropriate taxes," said Revenue Commissioner Loren L. Chumley. "This case serves as a warning to others who think they can get away with tax fraud in Tennessee. We will continue to pursue criminal activity and prosecute tax evaders to maintain fairness in our tax structure for Tennesseans."

Lane was indicted by the Bradley County Grand Jury on Aug. 9, 2006, on 11 counts of sales tax fraud. The indictment charged that Lane unlawfully and knowingly evaded the sales tax due the state of Tennessee by filing false sales tax returns for Mattress Direct for the monthly periods of Feb. 1, 2003, through Dec. 31, 2003. These fraudulent actions resulted in Mattress Direct failing to report $80,263.79 of taxable sales for the business and failing to remit $7,349.10 of the proper sales tax collected and due. This is in violation of Tenn. Code Ann. Section 67-1-1440(g).

A $15,000 bond was set. If convicted, Lane could be sentenced to a maximum of two years in the state penitentiary and fined for his failure to remit sales tax collected. In addition, civil tax, interest, and penalties are due the state.

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 is responsible for the administration of state tax laws and motor vehicle title and registration laws established by the legislature and the collection of taxes and fees associated with those laws. The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2005-2006 fiscal year, the department collected $10.3 billion in state taxes and fees. In addition to collecting state taxes, $1.8 billion of local sales tax was collected by the department for local governments during the 2005-2006 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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