2007 News Releases
For Immediate Release: November 27, 2007
FAYETTE COUNTY RESIDENT SURRENDERS TO AUTHORITIES ON SALES TAX EVASION CHARGES
NASHVILLE, Tenn. - As the result of an investigation by the Special Investigations Section of the Department of Revenue, John P. Sherrod surrendered himself for arrest today to the Fayette County Sheriff's Office on sales tax evasion charges.
On Nov. 26, 2007, the Fayette County Grand Jury indicted Sherrod on two Class E felony counts of Sales Tax Evasion in violation of Tenn. Code Ann. 67-1-1440(g). The indictments charge Sherrod with providing false and fraudulent documents to the Fayette County Clerk's office in connection with his purchase and subsequent registration of a boat and truck, resulting in the failure to remit $2,615.95 of sales tax due the State of Tennessee.
"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."
If convicted, Sherrod could be sentenced to a maximum of two years in the state penitentiary and fined $3,000 for each Class E felony count. Additionally, penalties and interest will be due the state.
This case was pursued criminally by the department in cooperation with District Attorney General Michael Dunavant'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.
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