Crossville Business Owner Facing Theft And Tax Evasion Charges

A Crossville business owner faces felony charges of theft and tax evasion after a state investigation.

67-year-old Edith Benson Arnold was indicted after the Tennessee Department of Revenue found she failed to remit sales tax collected from customers. Arnold also allegedly underreported sales at the Mega-Bytes Internet Café and Lounge. She is charged with a class C felony of theft over $10,000 as well as a class E felony charge of tax evasion.

“Investigations, such as this one, should warn retailers that failing to properly remit all the sales tax monies they collect is a crime,” Revenue Commissioner David Gerregano said.  “The taxes collected from customers are property of the state and local governments at all times.  Customers have a right to know that the tax they pay will be remitted to the state and used for public good of all Tennesseans.”

Arnold could face two years in prison and a $3,000 fine for the tax evasion charge, six years and up to $10,000 for the theft charge.

Revenue special agents arrested Benson Thursday. Bond was set at $7,500.