Category Archives: Taxes

J.R. Koontz Flowers behind in state taxes

WICHITA — Another longtime Wichita business is struggling and behind on taxes because of the economy.

J.R. Koontz Flowers owes $23,559 in state sales tax.

“We’re trying to get that resolved right now,” says owner J.R. Koontz. “It’s not only embarrassing, but it’s just very difficult.”

He says he suspected there was a problem, but not to this extent.

“I was just kind of blown away,” Koontz says. “I thought, truthfully, it wouldn’t go this far.”

He says contributing to the issue is his purchase of the 10,000-square-foot building at 633 N. Broadway where he moved the business a decade ago.

“Quite honestly, this facility is a dream come true, and I’m glad I did it,” Koontz says. “Regretfully, it probably wasn’t the smartest business move.”

Though he may be good with flowers, Koontz says running a business isn’t his specialty.

“I’m probably one of the worst business people there is when it comes to paying attention to handling those business things.”

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Ajax International Group files Chapter 11; Some Taco Tico restaurants to reopen

WICHITA — Ajax International Group filed Chapter 11 bankruptcy on March 8, which should allow a number of Taco Ticos to reopen around Wichita and possibly in a few other areas.

The state seized the assets of Ajax, which owns Taco Tico, and closed 10 of the restaurants in Wichita, Derby, Dodge City, Arkansas City and Topeka on Monday for failure to pay almost $435,000 in taxes.

“We have been in discussion with the Department of Revenue, and we have reached an agreement that will allow for (the Taco Ticos) to reopen,” says Bill Zimmerman, who is owner Mohmood Karim’s attorney.

Zimmerman says Karim may be back in the buildings as early as today.

“Physically, how soon the stores can be up and running, I don’t know,” he says.

Zimmerman says part of the company’s problem in getting behind on taxes and other bills was underperforming stores.

“They had some stores that simply weren’t making money,” he says. “Not all the stores will reopen, I know that. … But I don’t know which ones specifically yet.”

Zimmerman says the company owes some suppliers money as well but that taxes are the main issue for Ajax and Karim.

“They’re hopeful that they can make money with the stores that stay open … and pay the debts under the reorganization.”

State closes 10 Taco Ticos; owner may declare Chapter 11 to try to reopen

UPDATED — At 10 a.m. March 4, the state seized the assets of Ajax International Group, which owns Taco Tico, and closed 10 of the restaurants.

“This is for nonpayment of retail state sales tax,” says Jeannine Koranda, spokeswoman for the state Department of Revenue. “With that, they seized multiple sites.”

Koranda says there are two warrants against the company.

One, for June through September of 2011, is for $73,315.94. The other, for October 2011 through October 2012, is for $361,623.29.

Owner Mohmood Karim referred calls to his attorney, Bill Zimmerman. Zimmerman says the two most likely options for Karim are to either get on a payment plan or declare Chapter 11 bankruptcy.

“We will do our best to try to get them reopened tomorrow,” Zimmerman says. “Chapter 11 is probably the most straightforward way.”

The seizure included six Wichita Taco Ticos, one in Derby, one in Arkansas City, one in Dodge City and one in Topeka.

“This is the last in a long series of steps that are taken,” Koranda says of the state shutting down a business.

“We always work with the businesses in question,” she says. “If they can go onto a payment plan or work out an arrangement, they will be allowed to reopen.”

Zimmerman says he’s not sure why Karim wasn’t already on a payment plan.

“I know there were a lot of discussions,” he says. “Obviously, the taxes are serious and need to be dealt with.”

The Augusta, Newton and El Dorado Taco Ticos are not corporate restaurants and are still open.

Zimmerman isn’t sure how quickly Karim’s restaurants will be able to reopen.

“We’re certainly going to try to expedite it,” he says. “If they’re out of business, it becomes very difficult to pay the taxes, obviously.”

State closes A Bicycle Service over taxes

WICHITA — Alcoholic Beverage Control agents with the Kansas Department of Revenue this week seized the assets of A Bicycle Service in Derby. The state says the company owes $56,254 in state withholding tax.

Owner Richard Bledsoe couldn’t be reached for comment.

The state closed all three of Bledsoe’s stores, include A Bicycle Service shops in Andover and El Dorado.

In a press release, the state said, “Only after several unsuccessful attempts does the department take the action of seizing assets, which in this instance resulted in the business being closed.”

Liberty Tax Service franchisee to open second west-side office

WICHITA — After a decade in business, Liberty Tax Service franchisee Chris Merchant is opening a second location.

The accountant has a private firm as well as the Liberty office at 13th and West streets, which his wife, Deb, runs. Merchant’s daughter, Jamie Hanson, will run his second Liberty office, which will open in January in the same strip center where Domino’s is near 21st and Amidon.

“Mainly we’re doing another location because our first location has been so successful,” Hanson says.

She says Liberty is the fastest-growing tax preparation company in the United States. There are several other Liberty offices around Wichita that other franchisees own.

Hanson says more Liberty sites are possible in the future for her family.

“My goal is to have more than one location,” she says. “We’re going to see how this one goes. We can only do so much at a time.”

Don Piros with Landmark Commercial Real Estate handled the deal.

Hanson says the west side has been a good area for the company.

At the new location, she says, “We’re really going to try to target the Hispanic community.”

Hanson says the company already has one bilingual tax preparer and is training more.

“We’re just branching out.”

Ben Arnold behind on taxes but says it’s not nearly as much as the IRS claims he owes

WICHITA — After taking care of some tax trouble he had with Corporate Caterers of Wichita a few years back, Ben Arnold hoped to never be behind again. He is, though, and he’s as forthright as ever about it.

“I do owe taxes,” Arnold says. However, he says he doesn’t owe anywhere close to the approximately $250,000 the IRS says he owes.

“If I did, I would be in Mexico right now. That would just be an obnoxious amount you would have to owe for a period that covers 12 months.”

Arnold believes he owes only about a third of what the government says he owes. The issue, he says, is the IRS says it didn’t receive documentation from him.

“They assess a tax if they don’t have documentation in front of them,” he says.

Arnold says his accountant had sent proper documents and that he personally has now sent them a second time.

“That’s why I’m really, really frustrated.”

Arnold rapidly expanded his BLA Enterprises with catering at Comotara Center and two corporate cafes, Cafe 151 at Cargill and Cafe Intrust at Intrust Bank. He also owns AVI Seabar & Chophouse, which he opened late last year in the Drury Plaza Hotel Broadview.

“When I started this expansion, most of (the businesses) worked. A couple did not,” Arnold says. “We hit a very large pothole, and we’re filling it in.”

The largest pothole is AVI.

Arnold says in AVI’s first two months of business in 2011, it lost $75,000.

He says it was like “if you just popped a balloon, everything fell out.”

By August, Arnold says losses were down to $1,900.

He says September and October were profitable, and he believes AVI can be an almost $1 million-a-year business.

“We’ve grown to like it.”

Arnold says he now owes less than $16,000 on the business’ taxes.

He says another issue is the unprofitable banquet facilities he has in 9,000 square feet at Comotara.

“That’s one part of the business I’ve got to do something with. … I love my location, and I don’t want to leave it.”

Arnold says his catering is doing well and is on track to gross between $3.2 million and $3.3 million this year.

He says the cafes also “are extremely healthy.”

Arnold says it’s a “long, drawn-out process” getting tax discrepancies corrected, and while he’s frustrated, he’s not fazed despite the fact that he and his wife have used personal savings to cover some debt and have paid themselves almost nothing throughout the year.

“No one plans to fail,” Arnold says. “Any small business has struggles. You do what you’re supposed to do. … I don’t see this as a huge obstacle for me to overcome.”

States shut down Heavenly Sno, but Joy Wood plans to reopen this spring

WICHITA — One day after Joy Wood converted her Heavenly Sno shaved ice stand into a food truck, the state shut it down due to about $10,000 in unpaid taxes.

Wood has operated the stand by the Home Depot near K-96 and Woodlawn for 15 years.

Earlier this month, she told Have You Heard? that she was expanding her line of products to include barbecue brisket, homemade chili and baked beans, baked potatoes, Polish sausages, hot dogs and cobbler.

Wood now is hoping to reopen the stand in time for spring sales, if not sooner, though she’s not sure if those sales will include more than shaved ice.

“I wasn’t able to even do it for more than one day,” Wood says of the other food, “so I don’t know.”

You don’t say

“I definitely don’t want to make the brides worry.”

“I Do” Bridal & Tux owner Trinh Nguyen, who says a mail mix-up led to a tax delinquency of more than $12,000 but that it’s been taken care of and her Old Town business is doing fine

Wild at Heart owner says delinquent taxes related to former store

WICHITA — Wild at Heart owner Marissa Marklewitz owes almost $18,000 in state taxes, but she says they relate to her former east-side store and that her west-side store is doing just fine.

Marklewitz closed her Wild at Heart at the Collective at 21st Street East and K-96 last year after three years in business to concentrate on an expanded west-side store at the southeast corner of 21st and Maize Road

She says the day before a new tenant was to sign a lease to take over her east space, the deal fell apart, and she had to unexpectedly continue the lease.

“We sat on it for seven months,” Marklewitz says. “Due to the extended circumstance there, we got a little behind on things.”

She says she’s on a payment plan with the state.

Melange Custom Jewelry to reopen

UPDATED — When the state forced Melange Custom Jewelry out of business in January, owner Leslie Kinder told Have You Heard?: “At some point, I guess I’ll just regroup, get back together and start another store.”

That’s exactly what she’s done, although instead of starting a new store, Kinder is reopening Melange at its former space in Delano at 718 W. Douglas.

“I’m still kind of running around happy that I got my keys back,” Kinder says.

She’s reopening June 12 and will be open half days most afternoons except for Sunday and Monday.

Kinder says she filed Chapter 13 to reorganize and is working out a plan with the state to pay more than $40,000 in back taxes.

Appraisals will be a new focus of the business.

“Until I was outside the store, I didn’t realize there was a need for somebody … to go and help people with estates and things like that,” Kinder says.

In addition to making monthly payments to the state, Kinder says she’ll raise the bulk of what she owes through a three-day sale to liquidate stock in the next month or two.

“I’m glad they’re going to let me do the sale in my own way.”

Kinder says she’ll let us know the date of the sale soon.