TOPEKA – Monday morning, Kansas Department of Revenue agents and Augusta Police Department officer seized the business assets of Patti's Place LLC, which owed $75,003 in state sales and withholding taxes.
"The hardest part was having to tell all of my employees that I am sorry but they have no job," said owner Patti VanArsdale.
She said she was going to try to meet the final payroll out of her personal funds but there was no way that she will ever be able to pay off the amount of back taxes the state says she owes.
Officers seized all known bank accounts, on-site cash, business inventory and personal property assets belonging to owner Patti Vanarsdale, The restaurant, at 711 West Seventh, Augusta, was sealed closed and the assets will be sold at public auction to pay the taxes owed.
VanArsdale said the issue arose when her accountant failed to handle the taxes properly. She has been trying to catch up on her own but has not been able to.
Warrant execution occurs when all other collection attempts, including multiple letters, telephone calls, letters of impending legal action, tax liens filed with the local District Court to secure the debt, previous bank levies and on-site till taps are executed to bring the taxpayer into compliance have been exhausted.
Only after several unsuccessful attempts does the department take the action of seizing assets, which in this instance resulted in the business being closed.
The Revenue Department's standard practice is to continually encourage delinquent taxpayers, who are not lawfully filing or paying taxes - such as sales or withholding - to voluntarily enter into a repayment agreement.
Sales Tax – 2012ST162 – Butler County – Jan. 2011 through March 2012 – $56,115.49
Sales Tax – 2013ST88 – Butler County – April 2012 through July 2012 – $14,312.07
Withholding – 2013ST164 – Butler County – April 2011 – March 2012 – $3,848.83
Withholding – 2013ST89 – Butler County – Quarter 2 2012 – $727.08
Total taxes owed: $75,003.47