Are restaurants shut down for unpaid taxes more often than other businesses? A recent article in the Albany Times Union looked at the high number of restaurant closings every year for nonpayment of sales or withholding taxes.
Why are restaurants seized so often? Constant cash flow issues and low profit margins characteristic of the industry can make it hard to stay on top of sales tax payments. Unfortunately, if restaurant owners fail to address their tax issues promptly, they risk losing their businesses. In addition, they may find themselves with personal liability for unpaid taxes as a “responsible person” under sales tax laws. [Read more…]