MEMPHIS BUSINESSMAN SENTENCED ON
SALES TAX EVASION CHARGES

NASHVILLE, Tenn. - The Tennessee Department of Revenue's Special Investigations Section conducted the investigation that led to yesterday's sentencing of James Goines for evasion of sales tax and theft over $10,000. On Aug. 8, 2005, 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.

This conviction and resulting sentencing 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 sales taxes. The department pursues criminal charges in cooperation with the local district attorneys general.

On Sept. 22, 2005, Shelby County Criminal Court Judge Carolyn W. Blackett sentenced James Goines to four years probation and placed him on judicial diversion. During Goines' four years probationary period, he will be required to report to his probation officer monthly, submit to random drug tests, provide a copy of his monthly state sales tax return and proof of payment of sales taxes to his probation officer, perform 300 hours of community service, and for the next six-month period, he will be required to spend each weekend incarcerated at the Shelby County Correctional Center. Judge Blackett ordered Goins to make restitution to the state of $25,000. The Department of Revenue also will seek additional civil penalties and interest from Goines.

"The majority of businesses pay appropriate taxes," said Revenue Commissioner Loren L. Chumley. "This case serves as a warning to others who think they can get away with tax fraud in Tennessee. We will continue to pursue criminal activity and prosecute tax evaders to maintain fairness in our tax structure for Tennesseans."

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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