RUTHERFORD COUNTY BUSINESS OWNER SURRENDERS TO
REVENUE AGENTS ON SALES TAX EVASION CHARGES

NASHVILLE, Tenn. - The Department of Revenue's Special Investigations Section conducted an investigation that led to the indictment and May 10 surrender of Lyvonn O. Reese on tax evasion charges. Reese is the President of Hot Spot Tanning, Inc. located in Murfreesboro, Tenn.

On May 8, 2007, Reese was indicted by a Rutherford County Grand Jury on eight Class E Felony counts of sales tax evasion in violation of Tenn. Code Ann. Section 67-1-1440 for failing to file sales tax returns and failing to remit sales tax collected at the company's store located at 303 Sam Ridley Boulevard in Smyrna, Tennessee. These acts are alleged to have occurred between Jan. 1, 2004 and Aug. 31, 2004. If convicted, Reese could be sentenced to a maximum of two years in the state penitentiary and fined $3,000 for each Class E Felony count. Additionally, civil taxes, penalties and interest will be due the state.

“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 Reagan Farr. "This investigation underscores our department's ongoing efforts to enforce Tennessee's tax laws."

This case was pursued criminally by the department in cooperation with the Rutherford County District Attorney General's Office. Citizens who suspect violations of Tennessee's 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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