Polk County Man Surrenders on Tax Fraud Charges
Monday, July 13, 2009 | 09:31am
BENTON, Tenn. - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the indictment and surrender of Russell Lynn Towl on tax evasion charges. Towl, age 37, surrendered to Polk County Sheriff’s officers yesterday at the Polk County Sheriff’s Justice Center.
On June 29, 2009, the Polk County Grand Jury indicted Towl on three Class E felony counts of Tax Fraud in violation of Tenn. Code Ann. 67-1-1440(g). The indictments charge Towl with reporting false vehicle registration information to the Polk County Clerk’s Office in order to intentionally evade paying sales tax totaling $1,507.75 on his purchase of two vehicles on Sept. 9, 2005 and Nov. 30, 2005, and a boat on Feb. 13, 2007.
“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."
Bond was set at $1,500. If convicted, Towl could be sentenced to a maximum of two years in the state penitentiary and fined $3,000 for each Class E felony count. Additionally, civil taxes, penalties and interest will be due the state.
This case was pursued criminally by the department in cooperation with District Attorney General Steven Bebb’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 2008-2009 fiscal year, the department collected $10.2 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 2008-2009 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.
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