Clarksville Business Owner Arrested on Sales Tax Evasion and Theft Charges
Thursday, May 07, 2009 | 03:54am
CLARKSVILLE, Tenn. - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the indictment and subsequent arrest this morning of David R. McWhorter, owner of S.A.T. Services in Clarksville, Tenn. Revenue special agents arrested McWhorter this morning at his place of employment.
On May 4, 2009, David R. McWhorter, age 56, was indicted by a Montgomery County Grand Jury on 11 Class E felony counts of Sales Tax Evasion in violation of Tenn. Code Ann. 67-1-1440(g) and one Class B felony count of Theft Over $60,000 in violation of Tenn. Code Ann. 39-14-103. The indictments charge that McWhorter collected but failed to remit $93,182.97 in sales tax from April 2003 through December 2005. If convicted, McWhorter could be sentenced to a maximum of two years in the state penitentiary and fined $3,000 for each of the Class E Felony counts and up to 12 years in the state penitentiary and fined $25,000 for the Class B felony count. Additional civil taxes, penalties and interest will be due the state.
“When sales tax is collected from the public and not remitted, it is a breach of the public trust,” said Commissioner Reagan Farr. “The Department of Revenue aggressively pursues criminal sanctions and demands accountability for such actions.”
This case was pursued criminally by the department in cooperation with District Attorney General John W. Carney’s 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 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.TN.gov/revenue.
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