Eight convenience stores in southeast Kansas, including two in Coffeyville and two Independence were seized by the Kansas Department of Revenue on Tuesday after tax officials were unable to reach an acceptable agreement with the stores’ owners for failing to remit sales taxes to the State of Kansas
The eight stores are owned by TAS Group LLC, whose primary owners are Adam McMullen of Schnectady, N.Y. and Thomas L. Cook of Ozark, Mlo. The stores reopened later in the afternoon on Tuesday after business assets were seized. The Kansas Department of Revenue said TAS Group LLC owed $515,911.52 in non-remitted state sales taxes. The sales taxes are collected at the time purchases are made, however the sales taxes are not turned over to the State of Kansas for eventual distribution to state and local coffers.
Officials seized all known bank accounts, on-site cash, business inventory and personal property assets belonging to the owners. The convenience stores, mostly named Jump Start Markets, are in Coffeyville, Independence, Neodesha, Chetopa, Parsons and Pittsburg. In Coffeyville, the stores are located at 512 Northeast Street and 1308 W. Eighth. In Independence, the stores go by the name Trading Times at 419 W. College Avenue and Bailey’s Corner at 3024 W. Main.
The Kansas Department of Revenue said the seizure of assets is called a “warrant execution” which occurs when all other collection attempts, 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 are executed to bring the taxpayer into compliance 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 Kansas Department of Revenue’s standard practice is to continually encourage delinquent taxpayers, who are not lawfully filing or paying taxes – such as sales or withholding – to voluntarily enter into a repayment agreement.