Tuesday, June 5, 2012

Tennessee Business Owners Beware of the Taxman's Sucker Punch

Tennessee business owners know government imposes an almost infinite number of potential traps for the unwary. Recent news about the padlocking of a century-old restaurant in Murfreesboro reminds us of an important lesson about taxes.


Employees, food and beverage wholesalers, the landlord, utilites and other critical vendors demand payment. Uncle Sam and the Volunteer State are not quite as aggressive, at least not as quickly.


But ignoring the taxman is playing with fire.


City Cafe on the courthouse square in Murfreesboro has seen more than 100 years of diners, defying defeat by more modern chains. Last month, the historic business was padlocked by Tennessee Department of Revenue officials .


According to The Tennessean, "Tennessee Department of Revenue agents showed customers to the door around 9 a.m. May 23 before seizing the cash register and changing the locks, in addition to putting a note on the door stating it had been closed by order of the Tax Enforcement Division for uncollected taxes."


This Monday June 3, 2012, City Cafe reopened. We are not privy to the specific tax woes of City Cafe, but the sudden closure of the historic diner serves as a reminder that the taxman cannot be ignored.

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