The U.S. government filed suit March 12 against local restaurant owner Kim Bartmann, alleging failure to pay employment taxes for two former businesses between 2002 and 2003.
The government is looking to seize Bartmann’s home to pay the nearly $111,000 in tax debt and penalties, according to a petition filed in U.S. District Court. That amount is still growing because of accruing interest and other additions, the petition states.
“I do owe some payroll taxes … I have been working with the IRS for years now to pay those taxes,” Bartmann said.
She declined to comment further, but said the lawsuit would not affect the operations of any of her businesses. Bartmann runs
Bryant-Lake Bowl at 810 W. Lake St. and Barbette at 1600 W. Lake St. She also founded the Red Stag Supperclub in northeast Minneapolis.
The two businesses mentioned in the lawsuit have been defunct for several years. The government alleges unpaid employment taxes from June 30 to Sept. 30, 2002, and Dec. 31 to March 31, 2003, for Café Wyrd, Inc., which became Barbette in 2001.
The government also alleges unpaid employment taxes during a period ending June 30, 2002, for a business called Granada, Inc.
Bartmann filed quarterly federal employment tax returns for both businesses, but didn’t pay the taxes, according to the petition. Notices of the assessments and payment demands were delivered to Bartmann, but the debt wasn’t been paid in full, the document said.
The Internal Revenue Service has tried to collect the unpaid liabilities from assets other than Bartmann’s home, “and no reasonable alternative exists to satisfy them,” the petition states.
Bartmann has less than a month to object to the petition, at which time a hearing date would be set and objections would be considered.