No one likes to think about paying taxes. Even so, it's a necessary part of business. The IRS enjoys a significant amount of power when it comes to collecting the taxes it says your business owes.
Credit reporting is one way the Internal Revenue Service tries to get Connecticut residents to pay their taxes. When the IRS files tax liens, this information is sent to credit reporting companies and placed on one's credit report, which can do a lot of damage to one's already delicate financial situation. Those who have tax liens posted on their credit reports may have them removed by following these five simple steps.
The hope every Connecticut resident has when filing taxes is that they will not hear anything but good news from the Internal Revenue Service. However, months or even years down the line, there are an unfortunate few who receive letters stating they have been selected for tax audits. Audit is a word that can strike fear into anyone's heart. Not to worry, though; when it happens, taxpayers are protected by the Taxpayer Bill of Rights.
It is not uncommon for certain terms to be used interchangeably. Tax fraud and tax evasion are often considered to be one in the same, but the truth is, tax fraud is just a type of tax evasion. Here is what Connecticut laws say about tax evasion and tax fraud.
Earlier this year, the U.S. Supreme Court made a decision that will affect those who sell products online. Online retailers are now required to pay sales taxes to the states in which they do business, whether or not they have a physical presence in those states. Connecticut was ahead of the game on this, as the governor had already signed a bill into law requiring online business owners who sell more than $250,000 in products or services to pay sales tax. The Connecticut-specific sales tax law takes effect Dec. 1.