Georgetown Cupcake Faces Lien Over Unpaid Taxes

Updated 3:10 p.m.

Georgetown cupcake has paid its taxes, according to Washingtonian.

“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,” said co-owner Katherine Kallinis, in an email to Washingtonian.

Kallinis called the issue a "misunderstanding."

Original Post

Georgetown Cupcake's Georgetown location at 1209 Potomac St. NW was issued a tax lien for some $189,282.71 in taxes and penalties owed from August, September and October, the Washington Business Journal reports. The DC Office of Tax and Revenue filed the lien Thursday.

Sisters Katherine Kallinis Berman and Sophie Kallinis LaMontagne opened the cupcake shop in Georgetown in 2008. Once the sisters landed a show on TLC, the shop became a tourist attraction in Georgetown.

Georgetown Cupcake has expanded to locations in Bethesda, New York, Boston, and Los Angeles and plans a new location in Atlanta. In Bethesda and Georgetown, the store often attracts long lines of sugar-hungry customers.

According to the Washington Business Journal, "An attorney representing Georgetown Cupcake acknowledged that a series of sales tax returns were filed last fall without checks. Negotiations were ongoing between the cupcakery and the tax office regarding a settlement offer, but those talks apparently hit a snag, the attorney said."