2006 News Releases
For Immediate Release: September 16, 2006
CORDOVA BUSINESSMAN SENTENCED ON STATE SALES TAX EVASION CHARGES
NASHVILLE, Tenn. - Today Howard Reed, owner of The Final Detail, Inc., in Cordova, pled guilty to one Class E Felony count of sales tax fraud, a violation of Tenn. Code Ann. Section 67-1-1440(g), and one Class C Felony count for theft over $10,000, a violation of Tenn. Code Ann. 39-14-103. The Tennessee Department of Revenue's Special Investigations Section, in conjunction with the Shelby County District Attorney's Fraud and Economic Crime Unit, conducted the investigation that led to today's guilty plea and subsequent sentencing of Reed for evasion of sales tax and theft over $10,000.
"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."
Shelby County Criminal Court Judge Paula Skahan sentenced Howard Reed to six years in prison and placed him on judicial diversion. During Reed's six-year probationary period, he will be required to make full restitution of $38,341 to the state of Tennessee, report to his probation officer monthly, submit to random drug tests, and perform 100 hours of community service. The Department of Revenue also will seek additional civil fines and penalties from Reed.
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 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.TN.gov/revenue.
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