Murfreesboro Business Owner Arrested for Sales Tax Evasion and TheftMonday, October 12, 2009 | 08:14 am
NASHVILLE - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to Friday’s arrest of Gregory J. Bailey, age 44, owner of Millennium Computer Service in Murfreesboro, Tenn. Bailey was arrested by special agents at his home in Murfreesboro.
On Oct. 6, 2009, Bailey was indicted by a Rutherford County grand jury on 21 Class E felony counts of sales tax evasion in violation of Tenn. Code Ann. Section 67-1-1440(g) and one Class C felony count of Theft of Property Over $10,000 in violation of Tenn. Code Ann. Section 39-14-103. The indictment charges that from Jan. 2000 through Jan. 2005, Bailey intentionally failed to file sales tax returns and report taxable sales of $184,558.65 and failed to remit sales tax totaling $16,347.96 that was collected during that period.
If convicted, Bailey could be sentenced to a maximum of two years in the state penitentiary and fined up to $3,000 for each Class E felony tax evasion count and a maximum of six years in the state penitentiary and fined up to $10,000 for the Class C felony theft count. Additional civil taxes, penalties and interest will be due the state.
“The Department of Revenue is committed to applying Tennessee’s tax laws and policies uniformly to all taxpayers to ensure a level playing field,” said Revenue Commissioner Reagan Farr. “The department cannot and will not allow people engaged in fraudulent tax activities to have a competitive advantage over honest businesspeople.”
This case was pursued criminally by the department in cooperation with Rutherford County District Attorney William Whitesell’s office. Citizens who suspect violations of the Tennessee 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.TN.gov/revenue.