It’s not all sprinkles and frosting for D.C.’s most famous cupcake shop. The Washington Business Journal reported that Georgetown Cupcake owes the District $189,000 in unpaid sales taxes.
The District filed a lien against the shop Thursday. Records show that the shop of reality-TV fame failed to pay sales taxes over a three-month period. Including penalties and fees, the cupcake shop owes $69,571.78 from August, $66,363.74 from September and $53,357.19 from October.
Georgetown Cupcake told News4's Derrick Ward the following in an email Friday:
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"Georgetown Cupcake has paid its taxes to the DC Office of Tax and Revenue in full, and the Office of Tax and Revenue has acknowledged receipt of payment. The misundertanding [sic] regarding the lien has been resolved, the lien is in the process of being terminated, and we expect confirmation of the termination later today."
The attorney for Georgetown Cupcake admitted to WBJ that there were sales tax returns filed without checks last fall, but the store would be paying the taxes.
If the debt is not paid, the city could take away the store’s sales tax certificate, which would essentially shut down the establishment.
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