State Agents Seize Elsie's, Collect $29,000 in Taxes

Elsie's Lunch missed the lunchtime crowd yesterday when state revenue department officials closed the business for failing to pay its taxes.

Revenue agents seized Elsie's shortly after 11:00 a.m. to collect more than $29,000 in state meal taxes unpaid since 1982, Department Spokesman Harry M. Duming said.

Quick Recovery

By 12:30 p.m., Elsie's had signed a check for the outstanding taxes, and was once again open for business, he added.

Elsie's owner, Phillip A. Markell, refused to comment on the incident.

Under Massachusetts law, restaurants must charge a 5 percent meal tax on food and turn the money over to the state.

Restaurants not paying the taxes are "short-changing both the state and customers of money to be used for public purposes, by taking consumer tax payments as profit," a department press release stated.

Today's shutdown was part of a larger crackdown started this year by the department.

Last Resort

The Department of Revenue seized the deli after the owners failed to respond to a series of less drastic measures. The department used seizure only as a last resort, "if we simply can't work anything out" with the establishment, said spokesman George Bogosian.

Elsie's missed the January deadline for the state's special tax amnesty program, which would have allowed them to pay their back taxes without penalty.

Since the amnesty period ended, the department has seized 23 businesses including Elsie's, Bogosian said.

Officials said they could not specify exactly how much the restaurant owed or long payment was overdue, because of financial disclosure laws.

Despite late payments, Markell did not try to evade his taxes by filing incorrect informations, on his returns, Bogosian said Bogosian added that this practice is very common among those who do business in cash.

Forgiving Customers

Despite the state allegations of tax delinquency, regular customers said yesterday they could forgive Elsie's for keeping the tax money. "They're not making outrageous profits," said John F. Sheehan. "It's all fairness, it's probably the only way they can stay in business."