Former Sullivan County Businessman Pleads Guilty to Tax Evasion

Blountville, Tenn. - James William McConnell, 78, former owner of Bill McConnell Auto Painting and Body Works in Kingsport, pleaded guilty to 34 counts of sales tax evasion in Sullivan County Criminal Court Thursday.

Sullivan County Judge James Goodwin sentenced McConnell to three years supervised probation and ordered him to pay restitution to the state for sales tax owed. The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to McConnell’s plea and sentencing.

On February 11, the Sullivan County Grand Jury indicted McConnell for willfully attempting to evade $30,813.21 in sales tax by filing false tax returns from January 2009 through October 2011.

"When sales tax is collected from the public and not remitted, it is a breach of the public trust and a crime," Revenue Commissioner Richard Roberts said. "The Department of Revenue aggressively pursues criminal sanctions and demands accountability for such actions."

The Department pursued the criminal case in cooperation with District Attorney General Barry Staubus’ 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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