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Revenue agents arrest Crossville business owner accused of tax evasion

Edith Benson Arnold, the owner of Mega-Bytes Internet Café and Lounge in Crossville, is accused of stealing more than $10,000 in underreported and unremitted taxes.

CROSSVILLE, Tenn. — The Tennessee Department of Revenue said a Crossville businesswoman is behind bars after being indicted for tax evasion following an investigation.

A grand jury indicted 67-year-old Edith Benson Arnold, owner of Mega-Bytes Internet Café and Lounge in Crossville, with tax evasion theft of more than $10,000.

According to the department, Benson underreported her taxable sales and failed to remit additional sales tax collected from her customers. 

“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.”

Revenue agents arrested Benson Thursday, setting her bond at $7,500. If convicted, she could face up to 8 years in prison and be fined more than $13,000 for her combined charges.

People who suspect revenue law violations can call the state's tax fraud hotline at 1-800-327-8389.

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