2008 News Releases
For Immediate Release: July 8, 2008
FORMER MEMPHIS BUSINESS OWNER PLEADS GUILTY TO SALES TAX FRAUD
MEMPHIS, Tenn. - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the indictment, arrest and subsequent plea of Willie Johnson, Jr., former owner of J&J Liquors in Memphis, Tenn. On July 7, 2008, Johnson pled guilty to sales tax fraud and was granted judicial diversion for a period of six years.
Johnson was ordered to pay $18,320.78 in restitution to the state for unpaid sales tax and $508.48 in records reproduction expenses. Johnson failed to declare taxable sales of $198,249 and failed to pay $18,320.78 in sales tax collected at his business from Dec. 2002 through Aug. 2005. 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 White Collar Crime Unit of District Attorney General William Gibbon'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 2006-2007 fiscal year, the department collected $11 billion in state taxes and fees. In addition to collecting state taxes, $1.9 billion of local sales tax was collected by the department for local governments during the 2006-2007 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.
Related news: August 24, 2007 – Memphis Businessman Arrested for Theft of Property and Violations of the State's Revenue Laws (http://www.tn.gov/revenue/newsreleases/2007/willieJohnson.htm)
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