360° Coverage : Toby Keith's I Love This Bar & Grill Hit With Tax...

2 Updates
Toby Keith's I Love This Bar & Grill Hit With Tax Warrant
Photo Credit: Forbes Business

Toby Keith's I Love This Bar & Grill Hit With Tax Warrant

Apr 17 2014, 6:26pm CDT | by

In 2003, country singer Toby Keith went all the way to #1 with his mega-hit, “I Love This Bar.” The incredible popularity of the song inspired a chain of restaurants called Toby Keith’s I Love...

Filed under: news


26 weeks ago

Toby Keith's I Love This Bar & Grill Hit With Tax Warrant

Apr 17 2014, 6:26pm CDT | by

In 2003, country singer Toby Keith went all the way to #1 with his mega-hit, “I Love This Bar.” The incredible popularity of the song inspired a chain of restaurants called Toby Keith’s I Love This Bar & Grill with fifteen locations across the country including a spot in Keith’s hometown of Oklahoma City, Oklahoma.

Today, it appears that at least one location may be singing a different sort of tune: Toby Keith’s I Love This Bar & Grill in Destiny USA is said to owe more than $189,000 in back taxes. Destiny USA is the sixth largest shopping center in the nation and the largest in the state of New York. The shopping center attracts more than 20 million visitors each year, which makes it an attractive spot for a franchise like Toby Keith’s.

However, while it appeared that the restaurant was doing well (this according to Destiny USA’s general manager, Rob Schoeneck), the state of New York has a different take. The state has filed a tax warrant Toby Keith’s, claiming the location owes $189,392.17 in back taxes.

The source of those back taxes: unpaid sales taxes. Sales taxes are collected and treated a little differently from regular business income taxes. Sales taxes are not paid out of the business but rather are collected from customers to be turned over to the taxing authorities. Since sales taxes are collected from customers and held by the business, they’re often referred to as “trust fund taxes.”

Trust fund taxes also include other taxes collected from a third party like employee withholding. In many cases, the liability for trust fund taxes can be transferred personally to business owners or those in charge of financial operations. Additionally, trust fund taxes like sales taxes are not usually dischargeable or forgiven, even if a business is struggling.

Sales taxes can be tricky for businesses to maneuver since the cash is paid over directly but doesn’t belong to the business. When businesses find themselves in financial difficulty, it can be tempting to dip into trust fund tax accounts, like sales tax accounts, to pay bills to keep the lights on. It’s easy to think that the money can be replaced before it’s time to pay up: when that doesn’t happen, the business finds itself in tax trouble.

That tax trouble can result in seizures and forfeitures. In this case, the State of New York has filed a tax warrant against Toby Keith’s which allows it to satisfy the tax liability by levying the business’ bank accounts. The state could also seize the business to satisfy the debt: for now, however, the restaurant remains open.

This isn’t the first time that Toby Keith’s restaurant chain has drawn scrutiny for reasons other than its food: Toby Keith’s I Love This Bar & Grill in Woodbridge, Virginia made news for instituting a no-guns policy, even though Virginia allows firearms in bars and restaurants (although carrying a concealed weapon while under the influence of alcohol is prohibited in the Commonwealth).

It’s worth noting that Toby Keith (of whom, full disclosure, I’m a big fan) doesn’t actually own the restaurants that bear his name: he has a licensing agreement that allows the restaurants to use his name.

Want more taxgirl goodness? Pick your poison: receive posts by email, follow me on twitter (@taxgirl), hang out with me on Facebook or check out my YouTube channel. If you want to keep an eye on documents I’ve posted, check out my profile on Scribd. And finally, you can subscribe to my podcast on the site or via iTunes (it’s free).


7 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing the workforce of ...
Source: Business Times Singapore   Full article at: Business Times Singapore


7 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedie ...
Source: Business Times Singapore   Full article at: Business Times Singapore


Don't miss ...


<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.


blog comments powered by Disqus

Latest stories

US plane on secret mission returns to Earth
Los Angeles, Oct 18 (IANS) After spending about 22 months orbiting the Earth on a secret mission, a US Air Force X-37B unmanned, reusable space plane has finally returned.
Smoking during pregnancy alters newborn's DNA
New York, Oct 18 (IANS) Babies born to mothers who smoke during pregnancy may find it difficult to cope with stressors of daily life later due to an alteration in DNA of a gene that regulates passage of stress hormones from mother to foetus, a study says.
First hydrogen-deficient supernova progenitor traced
Tokyo, Oct 18 (IANS) In a finding that may have important implications for the evolution of massive stars, a group of researchers presented a model that provides the first characterisation of the progenitor (parent) of a hydrogen-deficient supernova.
Britain to expand Ebola screening beyond London
London, Oct 18 (IANS) British health authorities have said that screening of passengers arriving from regions affected by the Ebola outbreak will be extended to the Manchester and Birmingham airports.

Latest from the Network

Bush shoe-tossing painting hits record at Doha auction
Doha, Oct 15 (IANS/EFE) A controversial painting by Iranian artist Mahmud Obaidi, depicting an Iraqi journalist throwing shoe in 2008 at then US president George W. Bush, was sold for $62,500 at a Sotheby's auction in...
Read more on Celebrity Balla
US offers $45 mn bounty for eight terror leaders
Washington, Oct 15 (IANS) The US said Tuesday it is offering rewards totalling up to 45 million dollars for information on eight key leaders of the Al Qaeda in the Arabian Peninsula (AQAP) terrorist organisation. The...
Read more on Politics Balla
UNSC extends peacekeeping mission's term in Abyei
United Nations, Oct 15 (IANS) The UN Security Council (UNSC) has renewed the mandate of the UN peacekeeping mission in the Abyei border region between Sudan and South Sudan. In an unanimously adopted resolution, the...
Read more on Politics Balla
Ebola cases in West Africa could reach 10,000 per week: WHO
Geneva, Oct 15 (IANS) The World Health Organisation (WHO) has warned that the Ebola epidemic in West Africa could reach 5,000 to 10,000 cases per week by the first week of December. "Quite frankly, ladies and...
Read more on Business Balla
Turkey, Singapore sign strategic partnership agreement
Ankara, Oct 15 (IANS) Turkey and Singapore have signed a strategic partnership agreement to boost economic, political and cultural cooperation, as well as security collaboration, during the official visit of...
Read more on Politics Balla
Christina Aguilera is returning to 'The Voice' USA
Christina Aguilera will return to 'The Voice' USA next year. The 'Your Body' hitmaker, who previously shared a rotating spot on the judging panel with Shakira, has been replaced by Gwen Stefani this season as she is...
Read more on Celebrity Balla
Kesha's music producer hits back
Kesha is being countersued by her record company boss, Dr. Luke. The 41-year-old music producer, who runs Kemosabe Records, claims the 27-year-old 'Tik Tok' singer is a liar and is trying to extort him after she accused...
Read more on Celebrity Balla
Jason Derulo won't get back together with Jordin Sparks
Jason Derulo insists his split from Jordin Sparks is permanent. The 'Talk Dirty' hitmaker, who recently ended his relationship with the 'No Air' singer after three years of dating, has ruled out getting back together...
Read more on Celebrity Balla
Josh Groban feels 'very lucky' to be dating Kat Dennings
Josh Groban feels ''very lucky'' to be dating Kat Dennings. The 'Brave' hitmaker was very nervous before singing in front of the '2 Broke Girls' actress for the first time at the Carousel of Hope Ball in Beverly Hills,...
Read more on Celebrity Balla
Australian Richard Flanagan wins 2014 Man Booker prize
London, Oct 15 (IANS) The first Man Booker prize to allow American nominees was Tuesday night won by an Australian, with Richard Flanagan triumphing for a novel of love and war that tells the harrowing stories of...
Read more on Celebrity Balla