KDOR exercises tax warrant in Marion

Agents from the Kansas Department of Revenue, accompanied by the Marion Police Department, on Thursday executed tax warrants and seized the assets of Cynthia K. Taylor, dba Cindy’s Family Cafe, owned by Cynthia K. Taylor, for nonpayment of sales tax in excess of $16,000.

The warrants were filed in Marion County District Court. The assets were seized at 8:30 a.m. Thursday at 211 E. Main St., Marion.

All known bank accounts, on-site cash, business inventory and personal property assets belonging to the owner were seized and the business was sealed closed. Seized assets will be sold at public auction to pay toward delinquent tax.

According to KDOR, tax funds should be protected separately, as they lawfully belong to state and local government jurisdictions that need those funds to provide state and local services to Kansas taxpayers.

Examples include local police department, fire department, public works and all local governmental operations.

One of KDOR’s responsibilities is to recover those state and local funds so they can be distributed monthly back to fund state and local budgets, which sometimes leads to the state “executing a state tax warrant to recover state and local funds,” as in this case.

KDOR stated that its standard practice is to continually encourage delinquent taxpayers who are not lawfully filing or paying taxes (sales, income, etc.), to voluntarily enter into repayment agreements.

When multiple collection attempts fail the department is forced to protect the interests of the state and local government entities by executing a tax warrant, employ civil actions to encourage the taxpayers to comply, such as a bank levy, a till tap, or ultimately seize the assets to recover those tax funds.