Davidson County Man Arrested on Charges of Sales Tax Evasion and Forgery
NASHVILLE, Tenn. –The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the arrest of Keith A. Howard, age 40, of Davidson County. Early this morning, Special Agents arrested Howard on one count of sales tax evasion and one count of Forgery. The bond was set at $20,000.
On Sept. 8, 2008, a Sumner County Grand Jury returned the two-count indictment for Sales Tax Evasion in violation of Tenn. Code Ann. Section 67-1-1440(g), a Class E felony, and Forgery over $10,000 in violation of Tenn. Code Ann. 39-14-114, a Class C felony. The indictments charge that on Jan. 8, 2007, Howard filed false and fraudulent documents with the Sumner County Clerk’s Office that intentionally understated the actual purchase price of a Prevost motor coach resulting in his willful failure to remit $39,375 of sales tax due the state of Tennessee.
“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.”
If convicted, Howard could be sentenced to a maximum of two years in the state penitentiary and fined $3,000 for the sales tax evasion charge and a maximum of six years in the state penitentiary and fined $10,000 for the forgery charge. Additionally, civil taxes, penalties and interest will be due the state once the criminal case is concluded.
This case was pursued criminally by the department in cooperation with District Attorney General L. Ray Whitley’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).
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 2007-2008 fiscal year, the department collected $11.2 billion in state taxes and fees. In addition to collecting state taxes, $1.9 billion of local sales tax was collected by the department for local governments during the 2007-2008 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.