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Knitters Help Save Yarn Shop Nearly Shuttered Over Upaid Taxes

 Lisa Whiting, 35, opened Sifu Design Studio in 2011.
Lisa Whiting, 35, opened Sifu Design Studio in 2011.
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DNAinfo/Benjamin Woodard

EDGEWATER — Year after year, Sifu Design Studio's accountant botched the yarn shop's state tax returns, owner Lisa Whiting said.

She had no idea — until the tax man came knocking this month looking for $28,000 in unpaid sales tax dating back to when she opened in 2011. 

Whiting looked to set up a payment plan with the Illinois Department of Revenue, but the state wanted $7,000 by Friday.

"That's a huge amount in a short amount of time," said Whiting, 35. "I said, 'I can’t afford that' — I had a mild panic attack."

So she did the only thing she could think to do: Ask for help from the loyal customers who attend the shop's knitting nights, brunches and classes.

It worked. In just a few days, more than 100 people donated $4,400 to Whiting in an online fundraiser set up by a customer and friend.

"I was absolutely flabbergasted and over the moon by the love spread by my customers and community," she said. "The community really rallied together to help me."

Kim Richardson, the loyal friend who set up the page, said she not only wanted to help Whiting, but also preserve the Sifu community.

"I’ve been going to Lisa’s shop for three years now, probably four," Richardson said. "She has this really great community of knitters that you won’t find in any other knitting store. It’s not your typical older-lady knitting shop; it’s edgy."

So far, thousands have visited the fundraising page.

"I feel amazing that we were able to do this ... in such a short amount of time," Richardson said.

On Thursday, Whiting got more good news from the state after she had reached out for help from the Edgewater Chamber of Commerce, which in turn contacted State Rep. Kelly Cassidy.

With help from Cassidy's office, Sifu received an extension until the end of August to pay the $7,000.

"We have been working with Sifu to ensure they are able to successfully file needed paperwork and get in touch with the correct people in the department to negotiate a payment plan and identify the next steps," said Matt Muir, Cassidy's chief of staff.

And Whiting is now confident she'll be able to pay the down payment and make the rest of the payments to keep her doors open.

She admitted she “delegated” the shop’s accounting to a firm because she “wasn’t very good” at that side of the business, but now she regrets not paying closer attention to the finances.

She has since hired a new accountant, who is the one who realized the problem in the first place.

Whiting declined to publicly identify her original accountant.

State officials also declined to comment.

"Illinois law prohibits me from discussing anything about tax matters of individual taxpayers unless the department has issued an order regarding the taxes," a spokeswoman for the Department of Revenue said. "There is no public order on this matter."


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