Mango restaurant negotiating tough economic times

Tag : mango

A victim of the crumbling economy, Mango Thai Cuisine's owner isscrambling to come up with his back taxes before the IRS auctionshis liquor license.
Ton Komon, owner and chef at the Medway Road restaurant, saidMonday he will be able to keep his license: his back taxes will bepaid, and he hasn't stopped serving popular Pad Thai and Mango'sMango Chicken with cocktails.
"All taken care of," Komon said. "Before, we hadsome problems."
IRS spokeswoman Peggy Riley, however, said the issue has not yetbeen resolved.
The IRS planned to sell Mango's all-alcoholic beverages licensenext week at the IRS office in Worcester. Payment was to be $10,000due upon acceptance of the high bid, with the remaining balance ofthe full sale price due on Oct. 17.
"As of now, the auction is still scheduled," she saidTuesday.
The posting at Town Hall reads the property "has been seizedfor nonpayment of internal revenue taxes due from Mango ThaiCuisine Inc."
Komon said the IRS miscalculated his taxes, but the two recentlycame to agreement on the amount due. He said he paid $17,000 to hisaccountant, who will send the money to the IRS to settle the debt.
Komon said he will speak with his accountant to ensure the auctionwill be canceled and he can get on with his business.
"We're going to keep the license," Komon said. "Wedon't want to lose the license."
Riley said the IRS cannot comment on the specifics of Mango's case.
A tax lien was most recently placed on Mango Thai on Sept. 8 for$517, in July for $1,177, and in February for $5,519, according toRegistry of Deeds records on the secretary of state's Web site.
A federal tax lien was placed on the property in March 2007 for$13,714, records show.
Riley said penalties and interest accrue on unpaid taxes.
Auctions are scheduled, she said, after the IRS places a lien andultimately moves to seize property after a series of notices ofnonpayment.
"Each case is based on the facts and circumstances of eachcase," she said.
Milford has no available all-alcoholic beverage licenses.
New businesses are only eligible for a license if they buy it fromanother licensed establishment, if one of the 31 is given back toselectmen or if special legislation is passed for the town toobtain an extra license.
Licensees pay the town about $2,500 per year.
Selectmen would need to approve any sale of an alcohol license, asthey approve any new license or one up for renewal, said TownAdministrator Louis Celozzi.
It's not unheard of in Milford for a license to be auctioned.
"It's happened a few times in my tenure here," Celozzisaid. "Somebody goes bankrupt, they (the IRS) seize theirassets and auction them off."
Komon said skyrocketing food prices and other financial problems,including a hard hit from the economy, led to his issues with theIRS.
Mango, in business for eight years in the Blockbuster plaza, haswon several awards through the Daily News' Readers' Choice contest.
"The people support me a lot," Komon said.
Komon said it has become harder to keep Mango afloat, withcustomers themselves having hard times financially, and food pricesgoing up.
For instance, 20 pounds of jasmine rice used to cost $10. Now,Komon says, he pays $30.
The increase led Mango to raise prices on its menu by about 75cents, but the restaurant is eating most of the additional costs,Komon said.
Danielle Ameden can be reached at 508-634-7521 or dameden@cnc.com.