Richmond says restaurant owner owes thousands in meals taxes but can't answer her questions: 'That's scary'

RICHMOND, Va. -- The Greek Taverna welcomes guests with a family wall of pictures near the front entrance, encapsulating decades' worth of memories.

Toula Panos grew up in the Richmond restaurant, which was once owned by her parents dating back to the 1970s.

"I remember sitting in the office watching Wheel of Fortune while my parents have a line going out the door," Panos recalled.

So, when Panos took over the family establishment in 2017, it was a dream come true.

“Thinking one day, I'm going to own the restaurant, and here we are," Toula said. "And then I tell my mom, 'The city is screwing me.'”

But right now, Panos is facing a problem that may sound familiar.

Last month, she received a surprising notice from the City of Richmond, alerting her that she owed $19,000 in delinquent meals tax payments.

It was the first time Panos had ever heard of an apparent issue on the restaurant's account.

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“That's scary," she said. "And I'm sitting here thinking I've been paying my taxes the whole time, and I have, and I'm confident with my accountant that we have.”

Feeling confused, Panos went up to City Hall to try and get to the bottom of it.

“I said, 'OK, what’s going on?' They said, ‘We're going to go and review everything. Don't worry, it's not $19,000.' They knew. They weren't even in front of a computer, and that person knew that it wasn't even $19,000," Panos said.

WATCH: Richmond completes 236 meals tax reviews, this Richmond restaurant owner feels left in the dark

The next day, she got an emailed letter from the Finance Department dropping the amount owed down to $5,840, requesting that Panos sign a settlement agreement as a compromise.

Still, Panos said the city did not give any information explaining which of her payments caused the issue or the exact date it occurred.

“Why? I just want to know why. Why do I owe this? Where did we go wrong? I pay money to people to keep things straight in line for me," Panos said.

Panos questioned the numbers further and demanded supporting documentation.

She said the city then provided her with a spreadsheet of all her payments dating back to 2019.

However, the document still contained no explanation and did not point to the exact payment or date that triggered the issue.

So, on her own, Panos identified $11,000 of reversals on her account. However, she said none of the reversals were ever refunded back to her.

“So, I called them up. I talked to a supervisor, and he says he's not sure why it was reversed out. 'It could have been applied to your personal property tax or your business license tax. I'm not sure.' OK, so when I paid the personal property tax and the business license, where did that money go? Do I have credits?" Panos said.

She added, "There's just numbers all over the place."

WATCH: Richmond sending offers to settle meals tax issues, but some business owners are confused

Panos said the supervisor told her that if she did not pay the requested amount, the city would get tax enforcement involved.

“This is hard to go to sleep. This is hard to deal with every single day and put on a happy face with your customers and be positive even with your employees. Like, it's just this gray cloud right over you," Panos said.

She believes getting answers about her account should not be this difficult.

"Just start over. It's a mess, an accounting nightmare," she said.

And it makes her envy her brother who operates a restaurant in Henrico. The county's border is just one street over from the Greek Taverna.

“Can we just move the line? Can I tell them to move the line just right over? I want to be in Henrico," Panos said.

Panos' concerns come after dozens of Richmond restaurant owners came forward at the beginning of the year to express frustration with the city's meals tax collection. They complained about unfair penalties, a lack of communication, and confusing accounting practices.

In response, the Finance Department committed to reviewing meals tax accounts and improving its tax collection practices. But since then, other accountants and business owners, like Panos, have expressed concern over a lack of transparency about how the city is settling accounts.

CBS 6 reached out to the city to ask what meals tax payment the Greek Taverna missed and when, and whether the restaurant's accounts have a credit.

Spokesperson Ross Catrow said the city cannot comment on individual taxpayer information but added, "The Department of Finance is working with the business owner to resolve issues."

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