KNOX COUNTY BUSINESS OWNER SENTENCED
ON SALES TAX EVASION CHARGES

NASHVILLE, Tenn. - The Tennessee Department of Revenue’s Special Investigation Section conducted the investigation that led to the indictment and subsequent nolo contendre plea of Kenny C. Owen on 10 counts of sales tax evasion. On May 22, 2008, Owen, owner of Micko’s, 5210 Shubert Road, Knoxville, Tenn., was granted judicial diversion and sentenced to three years unsupervised probation.

Owen was ordered to pay $30,435.54 in restitution to the state for unpaid sales tax. Owen failed to declare taxable sales of $329,143.21 and failed to remit $30,435.54 in sales tax collected at his business from Jan. 2003 through June 2005. Additionally, civil taxes, penalties and interest will be due the state.

“The Department of Revenue is committed to applying Tennessee’s tax laws and policies uniformly to all taxpayers to ensure a level playing field,” said Revenue Commissioner Reagan Farr. “The department cannot and will not allow people engaged in fraudulent tax activities to have a competitive advantage over honest businesspeople.”

This case was pursued criminally by the department in cooperation with Knox County District Attorney General Randall Nichols’ 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.Tennessee.gov/revenue.

Related news: November 16, 2007 – Knox County Business Owner Arrested
For Sales Tax Evasion and Theft (http://state.tn.us/revenue/newsreleases/2007/owenarrest.htm)

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