A Kansas Department of Revenue spokeswoman said University Audio Inc. in Lawrence can reopen Friday because the owner paid about $8,000 in sales tax owed to the state.
Revenue agents seized assets from the business, 2319 La., Thursday morning to sell at an auction, but that evening owner Gautam “Tom” Patel said he had paid the store’s outstanding balance and cleared up the matter.
Freda Warfield, a revenue spokeswoman, Friday morning confirmed Patel came up with the payment in full.
“It’s definitely a wake-up call,” Warfield said. “We don’t want to close down businesses, so we’re always glad if a business can come to terms and repay the state.”
The state had said the business — before Thursday — had collected sales tax funds but not remitted them to the state for periods of December 2006 to February 2007, June 2007 and July to December 2009.
Warfield on Thursday said seizures are a last resort after several attempts to collect taxes. Patel said the business had fallen on tough times dating back to opening of a store in Emporia that had lost money.