MEMPHIS BUSINESS OWNER ENTERS AGREEMENT TO PRETRIAL DIVERSION ON SALES TAX EVASION CHARGES

NASHVILLE, Tenn. - Angela J. Harris, operating partner of Memphis-based HomeForNow, LLC, entered into a Memorandum of Understanding on May 10 with the Shelby County Criminal Court for pretrial diversion of two Class E Felony counts of sales tax evasion and one Class C felony count of theft over $10,000. Harris was placed on probation, ordered to serve fifty hours of community service, make a payment of $100 to Memphis Crime Stoppers, and make restitution of $22,736.17 to the State of Tennessee for the sales tax she collected and failed to pay to the Department of Revenue. Additionally, civil taxes, penalties and interest will be due the State. Upon successful completion of her probation, Harris may be eligible to petition the Court to have the convictions expunged.

On Oct. 5, 2006, Harris was indicted by a 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 after an investigation was conducted by the Department of Revenue. These acts occurred between Sept. 1, 2000 and March 31, 2003. Harris, age 47, was arrested and charged with these crimes on Oct. 7, 2006.

“The Department of Revenue is committed to applying Tennessee's tax laws and policies uniformly to all taxpayers to ensure a level playing field,” said Revenue Commissioner Reagan Farr. "The department cannot and will not allow people engaged in fraudulent tax activities to have a competitive advantage over honest businesspeople."

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 and prosecuted through Division 1 of the Shelby County Criminal Court. 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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