You are a business owner in Connecticut. You are doing the best you can to keep your company afloat all while following the state and federal rules that govern certain aspects of your business. Tax season rolls around and it is not until then that you realize you made a big sales tax mistake — either on your own or because you received an audit notification. What can you do?
Businesses in Connecticut and elsewhere are required by law to collect sales tax on all taxable items. This means the company owners need to stay up to date on what the current tax percentage is and they need to make sure that they actually calculate it correctly for every sale. This may seem easy enough, especially since most companies depend on computers for doing the calculations. However, all it takes entering the wrong tax percentage into the system for everything to get messed up.
If you fail to charge and pay the appropriate sales tax amount, you could end up owing what you missed paying and added fees and interest. This can add up quickly and do a real number on your bottom line. If you have realized that you have made a sales tax error, whether it is during tax season or any other time of the year, you can take corrective actions to address the matter swiftly and head on.
To business owners in Connecticut, the word audit is akin to a number of four letter words. It is something no one wants to hear. If you are facing an audit over a sales tax mistake or simply noticed a mistake before receiving an audit request, an experienced tax law attorney may be able to assist you. To learn how, please take a moment and visit our firm’s website.