SEVIER COUNTY BUSINESS OWNER SURRENDERS
ON SALES TAX EVASION CHARGES

SEVIERVILLE, Tenn. - The Department of Revenue’s Special Investigations Section conducted the investigation that led to the indictment and surrender of Robert Victor Diefenbach on sales tax evasion charges. On Jan. 23, 2008, Diefenbach, owner of M & R Auto, located in Sevierville, Tenn., surrendered to Special Agents at the Sevier County Sheriff’s Office. Bond was set at $5,000.

On Jan. 16, 2008, Diefenbach was indicted by a Sevier County Grand Jury on 33 Class E felony counts of Sales Tax Evasion in violation of Tenn. Code Ann. Section 67-1-1440(g).  According to the indictment, Diefenbach failed to declare taxable sales of $288,165.78 and failed to remit $26,823.05 in sales tax collected at the auto repair shop located at 2903 Newport Highway in Sevierville from Jan. 1, 2002 to Sept. 30, 2004. If convicted, Diefenbach 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 Sevier County District Attorney General James Bruce Dunn’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.Tennessee.gov/revenue.

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