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Special Investigations News Release

For Immediate Release:  March 11, 2014

Lebanon Businesswoman Pleads Guilty to Sales Tax Evasion Charge

Lebanon, Tenn. - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to Monday's guilty plea from N. Rosie Cannon to sales tax evasion. Cannon, 72, is president of City Limits Cafe in Lebanon.

Judge David Durham accepted Cannon's guilty plea per an order of deferment to one count of sales tax evasion. That means final judgment will be held open for two years pending Cannon's successful completion of Judge Durham's orders. Cannon was ordered to pay $10,000 in restitution to the state of Tennessee. She was placed on two years of supervised probation.

"The Department of Revenue is committed to applying Tennessee's tax laws and policies uniformly to all taxpayers to ensure a level playing field," Revenue Commissioner Richard Roberts said. "The Department cannot and will not allow people engaged in fraudulent tax activities to have a competitive advantage over honest business people."

Commissioner Roberts expressed his appreciation for the help of District Attorney General Tom Thompson's office in prosecuting Cannon's case. 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 2013 fiscal year, it collected $11.7 billion in state taxes and fees and more than $2.2 billion in taxes and fees for local governments.  To learn more about the department, visit www.TN.gov/revenue.

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