REVENUE INVESTIGATION LEADS TO SURRENDER OF BRISTOL
BUSINESSMAN ON SALES/USE TAX EVASION CHARGES

NASHVILLE, Tenn. - William Gregory Richards surrendered himself for arrest today to authorities at the Sullivan County Sheriff's Office. A writ was issued for Richards' arrest after the Sullivan County Grand Jury returned a one-count sealed indictment relating to evasion of sales/use tax due the state of Tennessee. Richards was released on his own recognizance.

"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 Loren L. Chumley. "This investigation underscores the department's ongoing efforts to enforce Tennessee's tax laws."

The investigation was conducted by the Special Investigations Section of the Tennessee Department of Revenue. Richards was indicted by the Sullivan County Grand Jury on Sept. 28, 2005, on one Class E Felony of failing to pay $46,173.67 of sales/use tax to the state of Tennessee during the period May 2000 through December 2002. This is in violation of Tenn. Code Ann. Section 67-1-1440(g). Richards is scheduled to be arraigned on Dec. 2, 2005.

If convicted of the charges, Richards could be sentenced to a maximum of two years in the state penitentiary and fined $3,000.

These cases are pursued criminally by the department in cooperation with local district attorneys general.

Citizens who suspect violations of the Tennessee revenue laws should call the toll-free tax fraud hot line at (800) FRAUDTX (372-8389).

The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2004-2005 fiscal year, the department collected $9.6 billion in state taxes and fees. In addition to collecting state taxes, $1.7 billion of local sales tax was collected by the department for local governments during the 2004-2005 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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