IRS records show that four upscale Springfield restaurants and two of their owners owe the federal government more than $477,000 in unpaid taxes.
- Black Sheep Restaurant LLC at 209 E. Walnut St. owes more than $60,000;
- Black Sheep at Chesterfield Village LLC owes more than $63,000;
- Char Steakhouse & Oyster Bar/Touch LLC at 1620 E. Republic Rd. owes more than $107,199;
- Flame LLC, tied to the steakhouse at 314 W. Walnut St., owes more than $100,000;
- Two of the restaurants’ co-owners, Billy and Sara Jalili, owe more than $147,000.
The federal tax liens were filed July 2 and reported by the Springfield Business Journal on Monday. The Daily Events on Wednesday also reported the liens and noted that they were related to unpaid payroll tax withholding, unpaid income tax and, in the case of the Walnut Street Black Sheep business, failure to file a correct information return along with unpaid payroll taxes.
Federal tax liens are filed when a taxpayer fails to pay a tax debt, according to the IRS website. A lien is the government’s legal claim against the taxpayer’s property, including real estate, personal property and financial assets. Tax liens are filed only after the IRS assesses a taxpayer’s liability and sends a bill, and only if the taxpayer fails to pay the debt on time.
Co-owner Billy Jalili said Wednesday morning there were “absolutely” no plans to close any of the family’s local restaurants.
“They are all doing well,” he said in a text message sent to the News-Leader.
The family has had a prominent place among Springfield restaurateurs as the originators of Bijan’s, one of the first fine-dining establishments to emerge as downtown Springfield began to slowly improve in the late 1990s. The first Black Sheep Burgers & Shakes location opened in 2015 in the former Bijan’s space on Walnut Street.
In 2005, the family started a Republic Road fine-dining restaurant, Touch, in a space formerly occupied by another restaurant, Chardonnay. The Boogie, a downtown nightclub that catered to a generation of Springfield college students, was also a Jalili creation.
In 2017, the Jalili family announced plans for a new steakhouse to be located in the Galloway Creek development, but when that South Lone Pine Avenue development opened in the fall of 2018, there was no steakhouse.
Billy Jalili provided the following statement regarding the recent tax liens:
“Yes we have fallen behind on our taxes and the reason we got behind is that we started a couple of projects that didn’t pan out.”
He added, “We have made some changes to our organization already by selling Midnight Rodeo and transforming Touch to Char Steakhouse & Oyster Bar (in early 2019). Going forward there will be no other changes to our existing operations and we are always striving to improve. We have made a payment plan with the IRS and we are going to continue with quality food & great service as we have done for the past 22 years. Springfield has been very good to us.”
In Nov. 2018, Touch co-owner Mike Jalili — brother to Billy Jalili — announced that Dec. 31 of that year would be the last day for the Mediterranean-themed Touch, which would be remade as Char.
Mike Jalili later told Feast magazine that “we’re seeing people move away from traditional fine-dining destinations like Touch.” Writer Lillian Stone reported that Char was modeled after the family’s downtown steakhouse, Flame, because “despite fluctuating trends, traditional steakhouses are a timeless addition to any dining scene.”
Billy Jalili declined to discuss the sale price for Midnight Rodeo, a nightclub at 1773 S. Glenstone Ave., or the exact date of its sale. But he said the buyer was David Marsh, a 20-year employee at Midnight Rodeo, “and he is doing a great job as the new owner.”
State records show that a company tied to Marsh, 2 Rivers, Inc., filed paperwork to use the Midnight Rodeo name on Jan. 25.
Missouri Restaurant Association CEO Bob Bonney told the News-Leader on Wednesday that tax liens are not a source of industry griping among his group’s membership.
More Springfield restaurant news:
Maria’s Mexican Restaurant adding second location on Springfield’s south side
With Little Korea, Springfield now has a haven for Asian hot pot dining
Answer Man: What’s being built on West Sunshine next to the FFO Home store?
