REVENUE INVESTIGATION RESULTS IN CONVICTION OF
MEMPHIS BUSINESSMAN ON SALES TAX EVASION CHARGES

NASHVILLE, Tenn. - The Tennessee Department of Revenue's Special Investigations Section conducted the investigation that led to today's conviction of James Goines for evasion of sales tax and theft over $10,000. Goines pled guilty to four Class E Felony counts of sales tax fraud, a violation of Tenn. Code Ann. Section 67-1-1440(d), and one Class C Felony count for theft over $10,000, a violation of Tenn. Code Ann. Section 39-14-103.

Today the Shelby County Criminal Court Judge Carolyn W. Blackett accepted Goines's guilty plea and scheduled his sentencing for Sept. 22, 2005. The Department of Revenue also will seek additional civil fines and penalties from Goines.

This conviction is a result of the Department of Revenue's ongoing efforts to encourage voluntary compliance with the state of Tennessee's revenue laws regarding reporting and remitting collected sales taxes.

"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 our department's ongoing efforts to enforce Tennessee's tax laws."

The department pursues criminal cases in cooperation with local district attorneys general.

Chumley encourages all citizens who suspect violation of the Tennessee revenue laws to 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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