A failure to pay taxes can lead to serious consequences. A handful of businesses throughout Minnesota are experiencing the reality of these consequences after the Minnesota Department of Revenue updated its delinquency tax records and essentially shutdown a portion of their business.

How did the Minnesota Department of Revenue impact these businesses?

The agency essentially revoked the businesses’ license to sell and distribute beer, wine and liquor.

What does this mean?

Tax agencies require businesses to pay certain taxes. This is true at both the state and federal levels. A failure to do so can result in penalties. The penalties will depend on the details and extent of the tax issue.

In this instance, the state agency removed businesses’ ability to sell beer, wine and liquor because they failed to pay their tax obligations. More specifically, the agency claims the businesses failed to meet all their sales, withholding, partnership and corporate tax obligations. 

Is it permanent?

No. The revocation is generally temporary. Once the business in question pays its tax obligation the Minnesota Department of Revenue will remove the business from the list. The agency claims it will renew the business’ ability to sell and distribute beer, wine and liquor within two days of receiving payment.

It is important to note that this is just one of the many tools the state agency can use to punish local business’ that are behind in tax obligations. Business owners are wise to take a contact by the Minnesota Department of Revenue regarding a potential business tax issue seriously. Options are available to protect your business. An attorney experienced in working with the agency can help to better ensure these interests are protected.