Former Memphis Business Owner Pleads Guilty to Sales Tax Fraud

MEMPHIS, Tenn. -  The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the indictment, arrest and subsequent plea of Willie Johnson, Jr., former owner of J&J Liquors in Memphis, Tenn. On July 7, 2008, Johnson pled guilty to sales tax fraud and was granted judicial diversion for a period of six years.

Johnson was ordered to pay $18,320.78 in restitution to the state for unpaid sales tax and $508.48 in records reproduction expenses. Johnson failed to declare taxable sales of $198,249 and failed to pay $18,320.78 in sales tax collected at his business from Dec. 2002 through Aug. 2005. 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 Reagan Farr. “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 White Collar Crime Unit of District Attorney General William Gibbon’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).