Foth Service assests seized by department of revenue
Kansas Department of Revenue and Marion County Sheriff's officers executed tax warrants at 9:30 a.m. Friday that had been filed in Marion County District Court and seized the business assets of Foths Service Center, owned by Lowell Foth, at 131 S. Main, Hillsboro.
The assets were seized for non-payment of state sales and withholding taxes.
All on-site cash, business inventory, and personal property assets, including personal vehicles belonging to the owner were seized and the business was sealed closed. Seized assets will be sold at public auction to pay toward delinquent taxes.
Warrant execution occurs when all other collection attempts, including multiple letters, telephone calls, letters of impending legal action, tax liens filed with the district court of domicile 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 this type of aggressive warrant execution action of seizing assets, which in this instance, resulted in the business being closed.
The KDOR's standard practice is to continually encourage delinquent taxpayers, who are not lawfully filing or paying taxes (sales, withholding, etc.) to voluntarily enter into a repayment agreement. When multiple collection attempts fail, the department is forced to protect the interest of the state and employ civil actions aimed at encouraging the taxpayers to comply, such as a bank levy, a till tap, or ultimately seizure of assets.
Tax warrants issued included warrants for unpaid sales taxes in 1996, 1998, 1999, 2001, 2002, 2004, 2006, and 2007 for a total of $345,578; and withholding taxes in 2002, 2004, 2006, and 2006 that totaled $4,073.
