MEMPHIS BUSINESS OWNER/MANAGER ARRESTED ON
SALES TAX EVASION CHARGES

NASHVILLE, Tenn. - The Special Investigations Section of the Tennessee Department of Revenue conducted an investigation that led to the indictment and subsequent arrest of Angela J. Harris, operating partner of Memphis-based HomeForNow, LLC. On Oct. 7, Harris, age 46, was arrested by deputies of the Shelby County Sheriff's Office on charges of state sales tax evasion and theft of property.

On Oct. 5, 2006, Harris was indicted by the Shelby County Grand Jury on two Class E Felony counts of sales tax evasion in violation of Tenn. Code Ann. Section 67-1-1440 for failing to file sales tax returns and failing to remit sales tax collected by the company and one Class C felony count of theft over $10,000 in violation of Tenn. Code Ann. Section 39-14-103. These acts are alleged to have occurred between Sept. 1, 2000, and March 31, 2003. If convicted, Harris could be sentenced to a maximum of two years in the state penitentiary and fined $3,000 for each Class E Felony count and a maximum of six years in the state penitentiary and fined $10,000 for the Class C Felony count. Additionally, civil taxes, penalties and interest will be due the state.

"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."

This case was pursued criminally by the department in cooperation with the Fraud and Economic Crime Unit of the Shelby County District Attorney General'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 2005-2006 fiscal year, the department collected $10.3 billion in state taxes and fees. In addition to collecting state taxes, $1.8 billion of local sales tax was collected by the department for local governments during the 2005-2006 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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