Kirk A Fonte Sr Surrenders To Revenue Agents On Sales Tax Evasion Charges

NASHVILLE, Tenn. - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to Kirk Andrew Fonte Sr. surrendering himself to agents this morning at the Rutherford County Sheriff’s Office on charges of evading sales tax.

“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 Loren L. Chumley. “This arrest underscores our department’s ongoing efforts to enforce Tennessee’s tax laws.”

Fonte was indicted by the Rutherford County Grand Jury on one count of sales tax fraud. The indictment charged that Fonte unlawfully and willfully attempted to evade sales tax due the state of Tennessee by using his authority as assistant fire chief of the Fosterville Volunteer Fire Department. Fonte used the fire department’s tax-exemption certificate to purchase personal items totaling $11,744.61 tax-free in violation of Tenn. Code Ann. Section 67-1-1440(g). The indictment charged Fonte with evading a total of $1,138.42 in sales tax during the period June 2004 through July 2005.

If convicted, Fonte could be sentenced to a maximum of two years in the state penitentiary and fined $3,000. Additionally, civil taxes, penalties and interest will be due the state once the criminal case concludes.

These cases are pursued criminally by the department in cooperation with local district attorneys general. Citizens who suspect violations of the Tennessee 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 2005-2006 fiscal year, the department collected $10.3 billion in state taxes and fees. In addition to collecting state taxes, $1.8 billion of local sales tax was collected by the department for local governments during the 2005-2006 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.