McMinnville Business Owner Charged with Tax Evasion and Theft

Nashville, Tenn. - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to Tuesday's arrest of Mitesh Khokhani on charges of sales tax evasion and theft. Khokhani, 36, was arrested by Special Agents of the Tennessee Department of Revenue at his business, M and M Sparta Smoke, in McMinnville. Bond for Khokhani was set at $75,000.

On October 10, Khokhani was indicted by the Warren County Grand Jury on 21 Class E felony counts of sales tax evasion and one Class B felony count of theft of property over $60,000. The indictments charge that Khokhani collected sales tax from customers on behalf of M and M Sparta Smoke and failed to remit sales tax due of $74,411.73.

If convicted, Khokhani could be sentenced to a maximum of two years in the state penitentiary and fined up to $3,000 for each count of sales tax evasion and could be sentenced to a maximum of 12 years and fined up to $25,000 for the theft of property count.

"The Department of Revenue promotes voluntary taxpayer compliance by educating taxpayers, aggressively pursuing criminal sanctions and demanding accountability when taxpayers engage in fraudulent activity," Revenue Commissioner Richard Roberts said. "This investigation underscores the Department's ongoing efforts to enforce Tennessee's tax laws."

This case was pursued criminally by the Department in cooperation with District Attorney Lisa Zavogiannis' 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 and the collection of taxes and fees associated with those laws. The Department collects about 87 percent of total state revenue. During the 2013 fiscal year, it collected $11.7 billion in state taxes and fees and more than $2.2 billion in taxes and fees for local governments. To learn more about the Department, visit www.TN.gov/revenue.

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