O’Malley’s abruptly closed; states says owners owe nearly $100k in back taxes

A south Corbin eatery is currently shutdown due to tax troubles and according to the restaurant’s owner, Gary Hatfield, a reopen date is unknown at this time.

A note hangs on the doors at O’Malley’s eatery and pub that says closed for one to two weeks.
That’s the amount of time Hatfield said he hopes it will take to resolve an issue with the Kentucky Revenue Cabinet, referred to as a reorganization by Hatfield, which claims that almost $100k is owed in back taxes.

The situation arose when O’Malley’s liquor license expired on May 31, 2009 and it applied for a renewal.

According to Nathan Jones, staff assistant with the Alcohol Beverage Control Board, his office received the license request along with the fee, but said they were unable to process the renewal.

"That establishment has a situation pending with the revenue cabinet and we are withholding the license until that is resolved," Jones said. "I am unsure exactly of the situation, but they will have to resolve that before the ABC will issue the license."

Corbin’s Alcohol Beverage Control Officer, Col. Bruce Rains, said he too had a license ready to be issued, but was waiting for the state license to be given.

"I have their stuff on my desk, along with the fee," Rains said. "There was some situation with the state and we really can’t do anything until they say its OK."

The Kentucky Revenue Department’s Director of Collections, Tammy Watts, confirmed that a lien was on file at the Laurel County Courthouse against the business and an individual (Hatfield) and as of Tuesday, the amount owed was $98,734. Watts said this is standard procedure in a situation like this, but that it will have to be resolved before they can be issued their liquor license. She also said this may not be everything that Hatfield is liable for in the case.

"Even though it is listed as this amount, this may not be everything that he is liable for," Watts said. "This amount reflects the taxes as well as interest calculated up to this point.

"This may not be everything he is liable for, but this is the total with interest through today," she added.
Hatfield confirmed that the money was owed, but said he has people currently in negotiations to try and get the amount reduced. He also said that he is simply reorganizing and expects the matter to be resolved within a week or two.

"We hope to be open in a week to two weeks," Hatfield said. "We are actually under reorganization right now and we have people negotiating the amount they say we owe.

"A lot of that is interest, so we are trying to get that reduced," he added. "Hopefully we can get it resolved and get the place back open."