Archive for Monday, February 7, 2011

Department of Revenue closes Tonganoxie business because of unpaid sales taxes

February 7, 2011

Kansas Department of Revenue agents and the Leavenworth County Sheriff’s Office on Monday seized assets of a Tonganoxie business that owed more than $105,000 in sales taxes.

According to KDOR, officers seized bank accounts, on-site cash, business inventory and personal property assets belonging to owners Roger and Phyllis Shilling, owners of Shilling Electric Co. Inc., which owed $105,435 in sales taxes.

The business, at 511 E. Fourth St. in Tonganoxie, was sealed closed Monday morning. Its assets will be sold at a public auction to pay for the taxes owed.

In a release, KDOR said warrant execution occurs when all other collection methods, 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, 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 delinquent sales taxes were from January 2005 to October 2010 and the total amount owed is $105,435.29.

KDOR's standard practice is to continually encourage delinquent taxpayers to voluntarily enter into a repayment agreement, the release said.

Comments

harleydee 3 years, 2 months ago

Really??? Do you honestly think that the KDOR would let a business remain operating for 6 years without the business owners meeting a payment agreement of some type. This is a hometown business which has served the Tonganoxie area for 60+ years and will continue to do what it can to remain in business to serve its loyal customers, community, and most of all friends and family. It would be nice to see both sides of a story for once. It would also be nice for our hometown paper to support our local businesses and "paint the whole picture" not just what they want you to see. Proudly - Dee Freeman Cannon (business founder Alvin Shilling's grandaughter and Roger/Phyllis Shilling's daughter)

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acecnks 3 years, 2 months ago

Kudos to the author! You have certainly left this reader wanting MORE! More compassion, more perspective, more information, you know - a more complete news story. While I do not know the parties involved, I am human, which is why I found this story disturbing. It is certainly not ‘breaking news’ that the recession might have even affected business owner’s way out in Tonganoxie. You should have at least been courteous enough to highlight the fact that this company has been in business and contributing to the community and state of Kansas for well over 60 years. It is also bothersome to me that not even one comment was solicited from the business owner(s). I see nowhere that they were ‘unavailable’ for comment. What happened to courtesy and respect? You have painted this small business and their owners in a very negative light. Congratulations to you on being able to regurgitate information from a KDOR press release. Congratulations to you for bringing us only one side of the story. Next time, do your legwork. Bring us some dimension. Your readers demand it. Until then – Tongie has a Shop Til You Drop event coming in April. Go cover that.

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mymonkey 3 years, 2 months ago

Was this the same coverage given to the grocery store when it had the problem?

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mldmsd 3 years, 2 months ago

Sales Tax is law. Don't care who you are, what type of business, how long you are in business, how good of business you are----you have sales tax owed then pay it. No disrespect to the business, have done business with them, and will con't to do so, but hey, be responsible.

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getagrip 3 years, 2 months ago

I'm confused. When I have gone into this business to make a purchase, I am charged sales tax. What happened to that money? Why wasn't it paid to the state as all businesses are required to do?

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mymonkey 3 years, 2 months ago

Since I don't know full story, I will wait and hope all the facts are presented. It is the law and I hope they get it corrected.

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harleydee 3 years, 2 months ago

The law is the law - no one is arguing that. In this type of business, service is provided and payment is not always guaranteed at that time. Many times, customers pay installments to their invoices/statements. Many service calls are done on emergency basis, water lines are frozen, pipes are broke, heaters are out, etc. Business decisions are made by priority basis and sometimes the heart out weighs business decisions. Business owners make decisions daily on what the priority is that day including paying employees, overhead, taxes, supplies, etc, and so on. Big name competitors would not make a late night service call unless payment was arranged at time of service that’s the difference and sometimes the downfall of hometown courtesy and compassion.

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mldmsd 3 years, 2 months ago

In business you can't let your heart dictate or your business will find itself in the position it is in now-breaking the law.

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teatime 3 years, 2 months ago

As far as I know, most businesses pay sales taxes to the state as they are collected, not as they are billed. So it doesn't matter how long it takes the customer to pay. Once they pay, the tax gets turned over to the state. Collecting sales tax and not turning over to the state is illegal. Those funds are not to be used for overhead or any other expense. There really can't be much more to the story than that. It doesn't matter if they have been in business 100 years, the law is the law. HOWEVER, the current economy is making it very difficult for honest folks to remain honest. It also sounds like their problem began BEFORE the economy fell. Bring on the whole story, but it won't change the law or a business's responsibility.

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Trouble 3 years, 2 months ago

This business and owners of this business are hard working and the most honest people a person could know. It is sad that they are having a hard time. I beleive all of us has found ourselves in hard times and had to make difficult decisions. I hope for this community that Shilling"s works things out and open thier doors soon!!

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showinquarters 3 years, 2 months ago

It is sad to see that a local, long time business is going through this, BUT as it has been stated, when a person pays the sales tax, that money should be put aside to pay the government. It would be like a customer saying to a business, "I'm sorry, I can't pay the sales tax right now because I have other places where that money can be spent"... you would never be able to leave the store with your purchase or have the service done. When you run a business, it is known that you have to pay sales tax (it isn't a secret). Even though you want to show compassion, which they might have done, you can't get behind on payments to the government because YOU lose in the end....

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