Taxes, taxes, taxes — they are a part of life that no one can escape. Connecticut residents who are business owners have to pay a slew of taxes, including sales tax on the items that they sell. How exactly does sales tax filing work?
According to the Connecticut Department of Revenue’s website, one must register his or her business and then file and pay sales taxes quarterly, monthly or annually. It all depends on an individual’s sales tax liability. For example, if one has a tax liability of $1,000 or less over the course of a year, then he or she would only have to pay annually. Those with higher tax liabilities may have to pay monthly or quarterly.
Just like all other taxes, one must file and pay on time. There are late fees and penalties for failing to do this. For those who file and pay electronically, the late fee is anywhere from 2 to 10 percent, depending on how late the filing is submitted. Interest of 1 percent is charged for every month a filing/payment is late.
Sales tax rates vary. This can make paying them somewhat confusing. Business owners who are still trying to figure out this system can turn to an experienced tax attorney who will be able to review their books, look over their tax filings and correct any errors that could cost them a lot in the long run. With the right help, it is possible to file sales tax error-free and on time. Those who find themselves being audited due to issues with their sales tax filings may also turn to legal counsel for assistance in resolving the issue as swiftly as possible.
Source: ct.gov, “Connecticut Department of Revenue Services: Managing Sales Tax Information“, Accessed on March 27, 2018