NASHVILLE — Former Tennessee Revenue Commissioner Reagan Farr said Wednesday he is “confident” that tax investigations “were handled appropriately” during his tenure and warned public discussion of “confidential matters” may have a “chilling effect” on future enforcement.
“Tax investigations are complex undertakings and [Revenue’s] investigative unit is staffed by dedicated, veteran enforcement personnel,” Farr said in an e-mail.
Ultimately, he said, “the head of the department must use his or her knowledge and experiences to make the decision as to whether evidence in a case is strong enough to warrant a criminal or civil prosecution or a negotiated settlement.”
Farr was responding to a report in the Chattanooga Times Free Press on Wednesday in which the Tennessee Bureau of Investigation confirmed it is acting on a request by District Attorney Torry Johnson of the 20th Judicial District in Nashville “to investigate circumstances relating to state sales tax investigations and subsequent negotiations and settlements on the part of the Department of Revenue on businesses in the state.”
District Attorney Tommy Thompson of the 15th Judicial District has said he was concerned that the Revenue Department, under Farr’s direction, had poorly handled an investigation into the D.T. McCall & Sons furniture chain, which he noted had “been under serious investigation for failing to pay sales taxes and paying in cash.”