The D.C. Office of Tax and Revenue shut down eight establishments in the District temporarily on Oct. 29 for failure to pay sales taxes collected from patrons. Three of the businesses РPrince of Georgetown on Prospect Street NW, Prince Caf̩ on Wisconsin Avenue NW, and Mendocino Grille and Wine Bar on M Street NW Рare located in Georgetown and have since reopened.

According to the OTR press release, the eight businesses collectively owed $860,000. The establishments were prohibited from making sales until they paid the taxes.

All of the establishments received fair warning of the impending closures, according to the OTR.

“Each of the taxpayers received a number of letters, telephone calls and personal visits. Each also received a certified final notice which provided a 30 [day] window for the taxpayer to contact the Office of Tax and Revenue to either pay in full or make arrangements to pay,” said David Umansky, public affairs officer in the Office of the Chief Financial Officer of D.C.. “After that time, the 30 days provided by the final notice, the notice clearly states that OTR [may] take enforcement action to collect the debt.”

The three establishments in Georgetown, two of which are hookah bars, have paid the taxes and have had their retail licenses restored.

“Prince of Georgetown, Prince Café, and Mendocino Grille and Wine Bar have made the necessary arrangements, and their licenses have been returned to them,” Umansky said.

The recent closures are part of a larger investigation by the OTR of businesses failing to pay taxes.

“The general procedure is that if arrangements cannot be made, OTR could auction the assets of the company and proceed to attempt to locate additional assets for seizure and sale,” Umansky said. “Also, if a company cannot or will not pay the trust fund portion of the liability (those amounts that are received for sales tax or monies withheld from employee salaries) may be assessed against the officers of the company.”

The OTR did not specify whether it was planning on closing more establishments in the near future.

“Enforcement decisions are made on a case by case basis. When circumstances require, seizures will take place,” Umansky said.  “