Former Unicoi County Businesswoman Pleads Guilty to Sales Tax Fraud

ERWIN - Sherry Mae Edwards, 50, former owner of J.D.’s Market & Deli, pleaded guilty to two felony counts of sales tax evasion in Unicoi County Criminal Court on Monday.

Unicoi County Judge Lisa Rice sentenced Edwards to two years supervised probation and ordered her to pay $55,247.24 in restitution to the state for sales tax owed. The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to Edwards’ plea and sentencing.

“This investigation serves as a reminder that retailers are not entitled to use or keep sales tax monies," Revenue Commissioner Richard Roberts said. "Sales tax revenues collected by retailers are never property of the retailer. They are always the property of our state and local governments. These taxes must be remitted to the state as required by law."

The Department pursued the criminal case in cooperation with District Attorney General Tony Clark’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 and the collection of taxes and fees associated with those laws. The Department collects about 87 percent of total state revenue.  During the 2014 fiscal year, it collected $11.8 billion in state taxes and fees and more than $2.3 billion in taxes and fees for local governments. To learn more about the Department, visit www.TN.gov/revenue.

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