Department of Revenue closes Tonganoxie business because of unpaid sales taxes
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.