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NFT: NYC Pizza legends Di Fara seized due to unpaid taxes

DanMetroMan : 8/21/2019 5:04 pm
"Bad news for pizza connoisseurs across the city: the original Di Fara's location in Midwood was shut down today and seized by the New York State Department of Taxation and Finance over unpaid taxes.

The Midwood pizzeria, located at 1424 Avenue J, has two warrants for unpaid taxes over the last two years, totaling $167,506.75, according to James Gazzale, spokesperson for the New York State Department of Taxation and Finance.

An employee at the Williamsburg Di Fara's location confirmed the closure with Gothamist, and said she knew nothing else about it, adding that their location is "the same owner, but separate." The store has been owned and operated by Domenico DeMarco since 1964."

How does this happen? A place around this long and seemingly SO successful failing to pay their taxes? Can anyone explain?
Link - ( New Window )
.  
Del Shofner : 8/21/2019 5:09 pm : link
"How does this happen? A place around this long and seemingly SO successful failing to pay their taxes? Can anyone explain?"

The owners prefer to take that money out for themselves rather than paying it to the State of New York? Or else, the business becomes unprofitable if it has to pay taxes? Those are just guesses based on things I've seen over the years.
RE: .  
DanMetroMan : 8/21/2019 5:13 pm : link
In comment 14538483 Del Shofner said:
Quote:
"How does this happen? A place around this long and seemingly SO successful failing to pay their taxes? Can anyone explain?"

The owners prefer to take that money out for themselves rather than paying it to the State of New York? Or else, the business becomes unprofitable if it has to pay taxes? Those are just guesses based on things I've seen over the years.


They charge 5 dollars per slice, have lines out the door, are regarded by many to be "the best" pizza in NYC (which may not pay the bills but does bring in the tourists) and recently opened a kiosk in Williamsburg. Just seems crazy they wouldn't be able to afford their tax bill or just stop paying.
Same shit happens  
pjcas18 : 8/21/2019 5:17 pm : link
in New Haven to the best pizza places. Sally's for example.

Not sure if this is the case with Di Fara but some of the New Haven places have been around so long as family business they get a ton of extended family claiming a piece of them and they take out loans and mortgages on the property and the business and get liens against them to the point eventually you have a village being "supported" by a pizza place.

even popular businesses have a tipping point.

again, not sure if that's the case here or if it's just tax evasion which is also common. Just because a business does well, doesn't mean they are paying their taxes.
well, I have no knowledge of this situation but  
Del Shofner : 8/21/2019 5:17 pm : link
there are many surprising examples of folks not paying taxes in all kinds of situations over the years.

It may be that NYS is computing the taxes in a way that the owners think is incorrect. But if that's the case there are ways to deal with it that don't get you shut down.
Ask H&H bagels. Literally  
NoPeanutz : 8/21/2019 5:18 pm : link
the best bagels in the world. That store was also seized because the owner was a tax cheat.
Some people just think they can get away with it.  
Ten Ton Hammer : 8/21/2019 5:19 pm : link
Maybe they had an accountant that was trying to hide it and got caught.
...  
26.2 : 8/21/2019 5:20 pm : link
I'm not a big fan of paying taxes, so I understand their plight.
It's really not hard for things to get away from a small business.  
Mad Mike : 8/21/2019 5:21 pm : link
Obviously Di Fara has been around a long time, and is very popular and has no problem drawing customers, but some people just struggle with keeping everything running smoothly (and the daughter who's now running it only took over in the past year or so).

At any rate, another article quoted her saying they've been on a payment plan, and missed the most recent payment because they mailed it late or something. Maybe that's BS, but I'd imagine they'll be able to straighten it out and re-open soon.
Is that why the Pilgrim diner in Verona  
xman : 8/21/2019 5:22 pm : link
closed a few months ago??
I’m shocked that a cash-only business would lowball it’s income  
sb from NYT Forum : 8/21/2019 5:33 pm : link
...wait, no I’m not.
All cash pizza parlors  
Ben in Tampa : 8/21/2019 6:00 pm : link
are the greatest crime vehicle in America today.

My opinion.
RE: All cash pizza parlors  
Jay on the Island : 8/21/2019 6:04 pm : link
In comment 14538538 Ben in Tampa said:
Quote:
are the greatest crime vehicle in America today.

My opinion.

Many restaurants are cash only in an attempt to keep their prices down due to credit card fees.
I don't get it  
RasputinPrime : 8/21/2019 6:35 pm : link
there is clearly much more to the story.
RE: Ask H&H bagels. Literally  
arcarsenal : 8/21/2019 6:38 pm : link
In comment 14538490 NoPeanutz said:
Quote:
the best bagels in the world. That store was also seized because the owner was a tax cheat.


I thought they closed down because Kramer let gum get into the dough when he came back from the strike.
The guy making the pizza  
barens : 8/21/2019 6:48 pm : link
is no youngster, I'd have to imagine his sons or family run the business.
RE: RE: All cash pizza parlors  
pjcas18 : 8/21/2019 6:59 pm : link
In comment 14538543 Jay on the Island said:
Quote:
In comment 14538538 Ben in Tampa said:


Quote:


are the greatest crime vehicle in America today.

My opinion.


Many restaurants are cash only in an attempt to keep their prices down due to credit card fees.


Seriously? This place charges $5 cash per slice for pizza, practically the cheapest food available in a restaurant.

If they cared they could do what gas stations do and have a cash vs credit price and add the 2% on for credit card customers.

Pretty sure the person paying $5 per slice isn't going to throw a fit at $5.10 and walk out in disgust. That extra 10 cents is a game changer.

this is a very naive take.

...  
christian : 8/21/2019 7:07 pm : link
160K seems like small amount for a lien, no?

I also agree, you can definitely pass processing fees onto the customer.

If a business is cash only, taxes are a big reason.
RE: RE: RE: All cash pizza parlors  
Jay on the Island : 8/21/2019 7:10 pm : link
In comment 14538584 pjcas18 said:
Quote:

Seriously? This place charges $5 cash per slice for pizza, practically the cheapest food available in a restaurant.

If they cared they could do what gas stations do and have a cash vs credit price and add the 2% on for credit card customers.

Pretty sure the person paying $5 per slice isn't going to throw a fit at $5.10 and walk out in disgust. That extra 10 cents is a game changer.

this is a very naive take.

I am being naive? I don't know what you do for a living but I run a restaurant that has been in my family since 1963 and we are a cash only establishment for that very reason. We've had discussions over the years obviously about accepting credit cards but our accountant has talked us out of it due to the fees.

Now to you and I a 20-30 cent price increase is no big deal but you would be surprised by the number of comments customers make when you increase prices by that amount regardless of how infrequent.

I have never been to this pizza place so I don't know how the slices are or if they are specialty slices but $5 for a regular slice is nuts even for NYC.
PJ  
Jay on the Island : 8/21/2019 7:13 pm : link
I was referring to Ben's take on cash only establishments not this specific pizzeria.
RE: RE: RE: RE: All cash pizza parlors  
Gatorade Dunk : 8/21/2019 7:17 pm : link
In comment 14538593 Jay on the Island said:
Quote:
In comment 14538584 pjcas18 said:


Quote:



Seriously? This place charges $5 cash per slice for pizza, practically the cheapest food available in a restaurant.

If they cared they could do what gas stations do and have a cash vs credit price and add the 2% on for credit card customers.

Pretty sure the person paying $5 per slice isn't going to throw a fit at $5.10 and walk out in disgust. That extra 10 cents is a game changer.

this is a very naive take.



I am being naive? I don't know what you do for a living but I run a restaurant that has been in my family since 1963 and we are a cash only establishment for that very reason. We've had discussions over the years obviously about accepting credit cards but our accountant has talked us out of it due to the fees.

Now to you and I a 20-30 cent price increase is no big deal but you would be surprised by the number of comments customers make when you increase prices by that amount regardless of how infrequent.

I have never been to this pizza place so I don't know how the slices are or if they are specialty slices but $5 for a regular slice is nuts even for NYC.

So raise it a dollar and increase the product volume by a slightly lower proportion to absorb the fees into the larger price/larger product model. Or shrink the product volume by 2%.

If your accountant is telling you that your bottom line is better off protecting the customers who won't part with an extra dime vs. attracting new customers in an increasingly cashless economy, you might want to put out an RFP for a new accountant. And make sure whatever one you choose accepts credit cards.
RE: RE: RE: RE: All cash pizza parlors  
pjcas18 : 8/21/2019 7:21 pm : link
In comment 14538593 Jay on the Island said:
Quote:
In comment 14538584 pjcas18 said:


Quote:



Seriously? This place charges $5 cash per slice for pizza, practically the cheapest food available in a restaurant.

If they cared they could do what gas stations do and have a cash vs credit price and add the 2% on for credit card customers.

Pretty sure the person paying $5 per slice isn't going to throw a fit at $5.10 and walk out in disgust. That extra 10 cents is a game changer.

this is a very naive take.



I am being naive? I don't know what you do for a living but I run a restaurant that has been in my family since 1963 and we are a cash only establishment for that very reason. We've had discussions over the years obviously about accepting credit cards but our accountant has talked us out of it due to the fees.

Now to you and I a 20-30 cent price increase is no big deal but you would be surprised by the number of comments customers make when you increase prices by that amount regardless of how infrequent.

I have never been to this pizza place so I don't know how the slices are or if they are specialty slices but $5 for a regular slice is nuts even for NYC.


Yes, I think you're naive if you think that's a main reason *most* cash only businesses don't take credit cards. And I know you said some, so in that case sure, but I think it's probably rare.

especially when they're charging $5 per slice of pizza. Does that sound like "keeping down prices for customers" to you?

RE: PJ  
pjcas18 : 8/21/2019 7:23 pm : link
In comment 14538595 Jay on the Island said:
Quote:
I was referring to Ben's take on cash only establishments not this specific pizzeria.


I think Ben is more right than wrong. I know from experience in the North End of Boston, those cash only pastry places are corrupt AF, and shady on their taxes on top of it.

Not suggesting your business is, but I think most are cash only for a specific reason and it's not to control the cost for customers.

maybe I'm as cynical though as I think you are naive.
RE: RE: RE: RE: RE: All cash pizza parlors  
Jay on the Island : 8/21/2019 7:29 pm : link
In comment 14538600 pjcas18 said:
Quote:


Yes, I think you're naive if you think that's a main reason *most* cash only businesses don't take credit cards. And I know you said some, so in that case sure, but I think it's probably rare.

especially when they're charging $5 per slice of pizza. Does that sound like "keeping down prices for customers" to you?

Ok well once again I wasn't referring to your comment or anyone's about this pizzeria I was just replying to Ben's comment on cash only establishments. Your entitled to your opinion and I am sure many people are doing shady shit who don't take credit cards with the intention to avoid paying taxes. I just take offense to basically being lumped in with them. I'm sure you would agree with me there.
RE: RE: RE: RE: RE: RE: All cash pizza parlors  
pjcas18 : 8/21/2019 7:33 pm : link
In comment 14538615 Jay on the Island said:
Quote:
In comment 14538600 pjcas18 said:


Quote:




Yes, I think you're naive if you think that's a main reason *most* cash only businesses don't take credit cards. And I know you said some, so in that case sure, but I think it's probably rare.

especially when they're charging $5 per slice of pizza. Does that sound like "keeping down prices for customers" to you?



Ok well once again I wasn't referring to your comment or anyone's about this pizzeria I was just replying to Ben's comment on cash only establishments. Your entitled to your opinion and I am sure many people are doing shady shit who don't take credit cards with the intention to avoid paying taxes. I just take offense to basically being lumped in with them. I'm sure you would agree with me there.


no offense intended, and I don't think Ben meant everyone one of them (I sure didn't).

I know you didn't  
Jay on the Island : 8/21/2019 7:37 pm : link
It's all good.
The most successful establishments  
Rondon : 8/21/2019 7:41 pm : link
Are cash only. There is a reason for that. 3-5% fees from credit card companies. Also 80-90% of transactions are credit cards. This is automatically reported to IRS. Where is with cash, no fees to pay and can report what is reasonable. The most successful places around here are cash only. There is a reason for that.
RE: Same shit happens  
Jay on the Island : 8/21/2019 7:44 pm : link
In comment 14538488 pjcas18 said:
Quote:
in New Haven to the best pizza places. Sally's for example.

Not sure if this is the case with Di Fara but some of the New Haven places have been around so long as family business they get a ton of extended family claiming a piece of them and they take out loans and mortgages on the property and the business and get liens against them to the point eventually you have a village being "supported" by a pizza place.

even popular businesses have a tipping point.


This is the first thing I thought of when I read that this place had no issues attracting customers.
I'm shocked they couldn't get NYC to let them pay it off in a  
montanagiant : 8/21/2019 7:47 pm : link
Installment plan.
RE: I'm shocked they couldn't get NYC to let them pay it off in a  
bubba0825 : 8/21/2019 7:49 pm : link
In comment 14538638 montanagiant said:
Quote:
Installment plan.


To my knowledge this is the last resort for the tax dept. they really don’t want to shut you down but are forced to when they are ignored
Since nobody else has.  
Hsilwek92 : 8/21/2019 8:58 pm : link
$167,506.75?

That’s a lot of dough.
I’m  
mitch300 : 8/21/2019 9:16 pm : link
Surprised a cash only restaurant is successful. This day and age most use cc or debt. Maybe I’m the exception. Most of all my purchases especially food are on a cc.
Jay on the Island  
Ben in Tampa : 8/21/2019 9:22 pm : link
To be fair to myself, I did not say cash only establishments.
Good artesians are not  
Bubba : 8/22/2019 7:01 am : link
always good business people. In my business I see mismanagement by my clients too often.
RE: I'm shocked they couldn't get NYC to let them pay it off in a  
Del Shofner : 8/22/2019 9:32 am : link
In comment 14538638 montanagiant said:
Quote:
Installment plan.


It’s not NYC. It’s the State.
I manage to pay all of my taxes  
Metnut : 8/22/2019 9:37 am : link
and don't have a cash-cow business like he does. Hopefully the state doesn't budge an inch.
RE: The most successful establishments  
regulator : 8/22/2019 9:52 am : link
In comment 14538632 Rondon said:
Quote:
Are cash only. There is a reason for that. 3-5% fees from credit card companies. Also 80-90% of transactions are credit cards. This is automatically reported to IRS. Where is with cash, no fees to pay and can report what is reasonable. The most successful places around here are cash only. There is a reason for that.


I don't think that's a rule... I don't carry much cash and that's becoming the norm these days. About the only things I use cash for are shoe shines, tips and *really good* cash-only establishments, though DiFara is one of the latter. Anything in between that's cash-only, I don't even consider.
RE: I’m  
FatMan in Charlotte : 8/22/2019 9:56 am : link
In comment 14538715 mitch300 said:
Quote:
Surprised a cash only restaurant is successful. This day and age most use cc or debt. Maybe I’m the exception. Most of all my purchases especially food are on a cc.


A brand-new cash only place would likely fail quickly. The ones that can succeed generally are in the Northeast and are considered mainstays.

pj referenced bakeries. Go to a couple pastry shops in Boston and the lines are around the block and are cash only. Some make it convenient by plunking down an ATM inside. A lot of old school Italian restaurants and pizza joints are cash only. They survive on their reputation and years of excellent goods.
Katz's Deli in NY  
Bubba : 8/22/2019 1:37 pm : link
is still cash only. They have an ATM in the store. They have one hell of a product though.
Di Fara is apparently reopening today, if this is correct -  
Del Shofner : 8/22/2019 1:41 pm : link
Our two-day local nightmare has come to an end: According to an Instagram post shared last night and another shared this afternoon, Di Fara Pizza will reopen at 2 p.m. today after being seized by tax authorities on August 20. All hail the pizza gods, may they always smile upon us.
RE: Di Fara is apparently reopening today, if this is correct -  
Del Shofner : 8/22/2019 2:53 pm : link
In comment 14539437 Del Shofner said:
Quote:
Our two-day local nightmare has come to an end: According to an Instagram post shared last night and another shared this afternoon, Di Fara Pizza will reopen at 2 p.m. today after being seized by tax authorities on August 20. All hail the pizza gods, may they always smile upon us.

re-opening confirmed per the Post - ( New Window )
reading the article  
pjcas18 : 8/22/2019 2:58 pm : link
linked initially the thing that bothered me most about this whole story is how many times the place has been closed for health code violations due to mouse feces and other issues.

I know it's hard to avoid in restaurants, but for these older places it's probably even harder and that is disgusting.
RE: .  
Rover : 8/22/2019 3:25 pm : link
In comment 14538483 Del Shofner said:
Quote:
"How does this happen? A place around this long and seemingly SO successful failing to pay their taxes? Can anyone explain?"

The owners prefer to take that money out for themselves rather than paying it to the State of New York? Or else, the business becomes unprofitable if it has to pay taxes? Those are just guesses based on things I've seen over the years.

the ONE thing I hate about NYC, all these merchants NOT taking credit cards or requiring $10 minimums.
RE: RE: Di Fara is apparently reopening today, if this is correct -  
Gatorade Dunk : 8/22/2019 3:40 pm : link
In comment 14539541 Del Shofner said:
Quote:
In comment 14539437 Del Shofner said:


Quote:


Our two-day local nightmare has come to an end: According to an Instagram post shared last night and another shared this afternoon, Di Fara Pizza will reopen at 2 p.m. today after being seized by tax authorities on August 20. All hail the pizza gods, may they always smile upon us.

re-opening confirmed per the Post - ( New Window )

This is great news. I was worried the tourists were going to find the good pizza places (like Scarr's or Lazzara's) if DiFara stayed closed much longer.
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