Former Washington County Businessman Pleads Guilty to Sales Tax Evasion

Tuesday, May 25, 2010 | 01:29 pm

JOHNSON CITY, Tenn. - The Tennessee Department of Revenue’s Special Investigation Section conducted the investigation that led to today’s guilty plea of Kevin Lee Hubbs, age 48, to nine felony and three misdemeanor counts of sales tax evasion. Hubbs was sentenced to two years of unsupervised probation and required to perform 24 days of community service. He paid restitution to the state totaling $13,546.49.

The 12 count indictment issued on Jan. 11, 2010, charged Hubbs with willfully attempting to evade sales tax due the state by filing false and fraudulent sales tax returns for his business, Mobile Tech “On-Site” Vehicle Maintenance, thereby intentionally failing to report sales tax totaling $13,546.49 to the state from Jan.2004 through Dec. 2004.
“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."
This case was pursued criminally by the department in cooperation with District Attorney General Tony Clark’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 2009-2010 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 2009-2010 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
Related news: March 31, 2009 – Former Washington County Businessman Arrested on Sales Tax Evasion Charges (