Illinois children’s boutique sues over retroactive taxation by California. ‘It’s basically going to be the end of my business’

When Isabel Rubinas launched Lollipop Seeds in 2012, the upscale children’s boutique was a small storefront in Chicago’s Lincoln Square neighborhood, and the fulfillment of a lifelong entrepreneurial dream. The venture has since morphed into a virtual storefront on Amazon and a battle with the taxman 2,000 miles away. Rubinas, who now runs Lollipop Seeds from the kitchen table of her Glen Ellyn, Ill., home, is suing California after the state froze her bank account and seized more than $2,300 last month in a dispute over unpaid Amazon sales tax. The lawsuit, filed Thursday in Chicago federal c…

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