Former Sevier County Business Owner Arrested for Sales Tax Fraud
Tuesday, December 02, 2008 | 03:37am
SEVIERVILLE, Tenn. – The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the indictment and subsequent arrest of Lindsey Charles Tibbetts for sales tax fraud. On Nov. 29, 2008, Tibbetts, former officer of The Open Hearth Hotel, Inc. and Stadium Foods, Inc., was arrested by the Sevier County Sheriff’s Department. Bond was set at $50,000.
On November 17, 2008, the Sevier County Grand Jury returned true bills for 19 Class E felony counts of Sales Tax Fraud in violation of Tenn. Code Ann. 67-1-1440(g). The indictment charges Tibbetts, age 56, with failing to report sales tax totaling $22,044.31 to the state from Oct. 1, 2002 through Jan. 31, 2004.
“Tennessee’s tax structure depends on taxpayers voluntarily complying with the laws,” said Revenue Commissioner Reagan Farr. “Taxpayers who collect but intentionally do not remit sales tax breach the public’s trust. This arrest underscores our commitment to collecting all taxes due the state of Tennessee.”
If convicted, Tibbetts could be sentenced to a maximum of two years in the state penitentiary and fined $3,000 for each Class E felony count. Additionally, civil taxes, penalties, and interest will be due the state.
This case was pursued criminally by the department in cooperation with District Attorney General Jimmy Dunn’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 2007-2008 fiscal year, the department collected $11.2 billion in state taxes and fees. In addition to collecting state taxes, $1.9 billion of local sales tax was collected by the department for local governments during the 2007-2008 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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