DES MOINES, Iowa — Restaurants continue to struggle throughout the COVID-19 pandemic.
That goes for Brian Ickowitz, franchisee owner of Maid-Rite in both Merle Hay and Valley West Mall. He owes $29,000 in back taxes and is has had a tough time paying it.
“From the Iowa Department of Revenues I was told, by their representative, that COVID-19 is not a valid excuse," said Ickowitz.
He made $300 the first month of the pandemic. Since March 2020, he's made 50% less in income.
“COVID is the direct cause of this," Ickowitz said. "I would not have any problems. I would pay everything off fine.”
He received PPP loans and qualified for the Restaurant Revitalization Fund, but said that's not enough.
Ickowitz said the state sent a letter that stated they would take his state sales tax license away if he didn't pay what was owed.
He recently took out a loan to pay the bill.
"The little guys need help too, and I'm the little guy," Ickowitz said.
The Iowa Department of Revenue told Local 5 in an email:
"The Department of Revenue (IDR) has been and will continue to be sensitive to taxpayers in difficult circumstances. IDR worked with businesses, including restaurants, during the COVID-19 pandemic to provide them assistance with tax deadlines.
Early in the pandemic, the Department, in partnership with the Iowa Economic Development Authority, did delay due dates for sales remittance and withholding remittance.
This program was focused on the hospitality industry, including restaurants. Additionally, income taxes deadlines were delayed for all taxpayers last year. While the department does have authority in certain circumstances to delay tax due dates, it does not have the authority to relieve taxpayers of statutory tax obligations."
You can read about the IDR matter here.