EAST RIDGE BUSINESSMAN SURRENDERS HIMSELF TO AUTHORITIES
FOR FAILING TO REMIT COLLECTED SALES TAX

NASHVILLE, Tenn. - Jerry Ray Chapman, d/b/a Choo Choo Computer Forms of Chattanooga, Tenn., turned himself in to authorities of the Hamilton County Sheriff's Office on Feb. 16, on charges of sales tax evasion. The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation leading to the indictment and subsequent surrender of Chapman, age 57, for failing to remit taxes in the amount of $21,632.

"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."

Chapman was indicted by the Hamilton County Grand Jury on Jan. 26, 2006, on 13 counts of sales tax evasion, a Class E Felony in violation of Tenn. Code Ann. Section 67-1-1440(g). The indictments charged Chapman with failing to file sales tax returns, failing to report taxable sales of $237,264.29, and failing to remit $21,632.64 in sales tax collected.

A $10,000.00 bond was set. If convicted, Chapman could be sentenced to a maximum of two years in the state penitentiary for each count of sales tax fraud and fined $3,000 for each count relating to his failure to remit sales tax collected. In addition, civil tax, interest, and penalties are due the state.

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

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

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.

###