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.
For business owners in the state who only do a small amount of business online, this new sales tax law is not likely to affect them. It is meant to hold those business owners who primarily sell online responsible for meeting their tax obligation. This is something many online retailers have been failing to do for a long time.
Online retailers are concerned that every state will have the ability to make up its own online sales tax laws. Many believe this should be one federal tax so that it is standard across the board. Unfortunately, it did not work out that way which means business owners will have to keep tabs on different state sales tax laws moving forward.
This new sales tax law has not made an already difficult subject any easier for those individuals who do online business in Connecticut or elsewhere. To help avoid tax headaches, business owners can turn to an experienced tax attorney who will be able to assist them with their tax filings and ensure they are meeting their sales tax obligations. Those business owners who end up being audited over sales tax mistakes can also turn to legal counsel for assistance addressing the matter.