Forget to pay sales tax on your tobacco purchases?

On Behalf of | Feb 9, 2018 | Sales Tax

Just about anything can be bought online these days and usually at a cheaper price than what is offered in standard brick-and-mortar establishments. Did you know, though, that some of your online purchases may be subject to Connecticut sales tax even if the seller does not charge you sales tax at the time of purchase? This may not be true for everything you purchase online, but it is for any tobacco products you may buy.

The shipping of private tobacco purchases into the state of Connecticut is actually illegal, yet it happens all the time. It is often cheaper to buy cigarettes this way. Those who do buy such products online are supposed to pay state taxes on the wholesale price at a sales tax rate of 50 percent.

Most people do not actually report online tobacco purchases on their tax returns. A lot of people probably do not even realize that it is required. Those who fail to report the purchases and pay the hefty tax could find themselves owing a significant sum to the Department of Revenue in fines and back taxes — incarceration is also a possibility. A statute of limitations does not currently exist in regard to tobacco purchases, so they could try to collect unpaid sales tax going back several years.

Do not let unpaid sales tax on cigarettes or other tobacco purchases ruin your life. It may be possible to avoid any severe consequences if the right actions are taken as soon as possible. To learn how an attorney can help you deal with your tobacco sales tax crisis, please take a moment and visit our firm’s website.