Category Archives: Taxes

You don’t say

“I keep waiting for Sam Brownback to send me business cards with the state seal on it.”

– Restaurateur and caterer Ben Arnold, who says he feels more like he’s in the tax business, though he’s resolved his latest issue over $7,222 in contested taxes at A.V.I. Seabar & Chophouse

State seizes assets of Adventure RV and Truck Center and Adventureland RV Rentals

WICHITA — The state on Friday seized the assets of Adventure RV and Truck Center and Adventureland RV Rentals for nonpayment of almost $310,000 in state sales tax.

According to a news release from the state, officers seized business and personal property, bank accounts and on-site cash of business owner Douglas C. Williams.

The dealership, which is at 4650 S. Broadway, will be sold at auction to pay for the taxes.

As is standard for its news releases about business seizures, the state’s release 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. 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.”

State closes Vision Doctors and Showroom Automotive for failure to pay taxes

UPDATED — The Kansas Department of Revenue and Alcoholic Beverage Control seized assets of two businesses on Tuesday.

According to a news release, the state closed four Vision Doctors sites, including offices in Wichita, Derby, Goddard and Wellington, for what it says is $229,981 in back taxes.

The state also closed Showroom Automotive in Haysville for what it says is $11,294 in unpaid sales tax.

The state issued a follow-up release today to say that it allowed Vision Doctors to reopen “after the owner submitted missing tax returns for the business periods on the warrants. The income tax warrants are still in effect.”

Neither Michael Gordon with Vision Doctors nor Samuel A. Valdez or Samuel J. Valdez with Showroom Automotive could be reached for comment.

The release says assets from both of the businesses will be sold at auction to pay the taxes.

Taco Tinga reopens and replaces three Taco Tico restaurants

WICHITA — Taco Tinga is back open along with what looks to be three Taco Tico restaurants, though they’re now Taco Tingas, too.

“We’re currently working on getting the signage changed,” says David Eron, an attorney for the new owner, HAK Group.

The state seized and then reseized the assets of several of Mahmood Karim’s Taco Tico restaurants along with his Taco Tinga for failure to pay taxes.

Karim briefly acknowledged he’s back at the restaurants under a new agreement.

Jeannine Koranda, a spokeswoman for the state, says, “We have not reached any agreement. It would have to be under new ownership.”

In a follow-up call, Karim deferred further questions until after the lunch hour. Then, a woman who identified herself as Mrs. Karim left a voicemail message to say any further calls would have to be to her attorney, David Eron.

Eron won’t discuss the ownership of HAK Group except to say that Mahmood Karim isn’t involved. He won’t say if Mrs. Karim is an owner.

“Again, I can’t disclose ownership issues.”

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You don’t say

“I feel like I’m a tax collector.”

Corporate Caterers of Wichita owner Ben Arnold, who says he accidentally underpaid on state taxes by about $16,000 (which is in addition to the previously reported almost $300,000 he owes in federal taxes)

You don’t say

“They’ve not stuck by the agreement.”

– Spokeswoman Jeannine Koranda on how the state has reseized the assets of four Taco Tico restaurants because owner Mahmood Karim hasn’t followed a payment plan for paying back taxes, and it has closed and seized the assets of his Taco Tinga restaurant as well

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.”