Russellville Business Owner Pleads Guilty to Sales Tax Evasion

Morristown, Tenn. - The Tennessee Department of Revenue’s Special Investigation Section conducted the investigation that led to the guilty plea of Manfred Shoemaker, age 37, former officer of A-1 Tire & Auto Repair, Inc., located in Russellville, Tenn., on July 14, 2011.

Manfred Shoemaker pleaded guilty to eight counts of sales tax evasion and was sentenced to eight years probation. He was granted judicial diversion and ordered to make restitution to the state in the amount of $25,462.00.

On Nov. 1, 2010, the Hamblen County Grand Jury indicted Shoemaker. The indictments charged Shoemaker with eight Class E felony counts of sales tax evasion in violation of Tenn. Code Ann. Section 67-1-1440(g) for failure to remit sales tax collected from Jan. 2006 through Dec. 2007.

"The majority of businesses pay appropriate taxes," said Revenue Commissioner Richard H. Roberts. "I hope this case will serve as a warning to others who think they can get away with tax fraud in Tennessee. We will continue to pursue criminal activity and prosecute tax evaders to assure fairness in our tax structure for Tennesseans."

This case was pursued criminally by the department in cooperation with District Attorney General Berkeley Bell’s office. Citizens who suspect violations of the Tennessee revenue laws should call the toll-free tax fraud hot line at (800) FRAUDTX (372-8389).

In addition to collecting state taxes, $2.0 billion of local sales and business taxes were collected by the department for local governments during the 2011 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.TN.gov/revenue.

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