McMinnville Business Owner Pleads Guilty to Tax Evasion

NASHVILLE -- The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to Mitesh Khokani’s guilty plea for sales tax evasion Wednesday.  On October 10, 2014, the Warren County Grand Jury indicted Khokhani on 21 felony counts of sales tax evasion and one felony count of theft of property over $10,000.  The indictments charged that from April 2010 through December 2011, Khokhani failed to remit $74,411.73 in sales tax collected from customers of M and M Sparta Smoke, LLC, located in McMinnville, Tenn.  Judge Larry Stanley Jr. accepted Khokhani’s guilty plea on tax evasion charges and placed him on two years of probation. Khokhani was also ordered to pay full restitution and court costs. 

“This investigation will serve as a reminder that retailers are not entitled to use or keep sales tax monies,” Revenue Commissioner Richard Roberts said. “When sales tax revenues are collected by a retailer, they are at all times property of the state or local government and must be remitted to the state.”

The Department pursued this criminal case in cooperation with District Attorney Lisa Zavogiannis and her staff. 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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