Linden Tenn. Business Owner Pleads Guilty to Tax Evasion

NASHVILLE-- Jaykumar Suresh Patel, 32, president of Tobacco Mart in Linden, Tenn., pleaded guilty to three counts of sales tax evasion Wednesday. The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to Patel’s guilty plea.

On November 24, 2014, the Perry County Grand Jury indicted Patel on 29 felony counts of sales tax evasion. The indictments charged that from January 2011 through May 2013, Patel failed to remit $42,676.92 in sales tax collected from customers of Tobacco Mart. Judge Mike Binkley accepted Patel’s guilty plea, and he placed Patel on two years of supervised probation. Judge Binkley ordered Patel to pay restitution plus court costs. Judge Binkley also ordered Patel to perform 200 hours of community service work.

“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 they must be remitted to the state.”

The Department pursued this criminal case in cooperation with District Attorney Kim Helper 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.

###