Fayette County Business Owner Enters Plea to Felony Tax Evasion Charges

NASHVILLE, Tenn. - On Wednesday, June 27, 2007, Michael Harrison, owner of Liquid Sports Marine, LLC, located in Rossville, Tenn., plead guilty in the Fayette County Circuit Court to 10 Class E felony counts of sales tax evasion. The 10 counts covered the periods of Jan. 2003, March 2003, April 2003, May 2003, Aug. 2003, Sept. 2003, Feb. 2004, March 2004, May 2004 and June 2004 when Harrison willfully attempted to evade payment of $25,280.61 in Tennessee sales tax. An 11th Class C felony count for Theft Over $10,000 was dismissed pursuant to the plea agreement .

Harrison was sentenced to one year in prison. The sentence was suspended when he applied for and was granted Judicial Diversion and was placed on supervised probation for one year by a circuit court judge. He was also ordered to pay all court costs and a $500 fine, which was directed to the Tennessee Department of Revenue’s Special Investigations Section.

“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 Reagan Farr. “This investigation underscores our department’s ongoing efforts to enforce Tennessee’s tax laws.”

This case was pursued criminally by the Special Investigations Section of the Tennessee Department of Revenue in cooperation with Fayette County District Attorney Michael Dunavant’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.