Business owners in Connecticut and elsewhere have a duty to collect taxes on non-exempt items that they sell, regardless if they run their businesses from brick-and-mortar stores or online. This sales tax ultimately needs to be passed on to the state, either monthly, quarterly or annually. How will one know how often sales tax returns have to be filed?
The state has made it fairly clear how often sales tax has to be reported and when returns have to be filed. According to the Department of Revenue Services, when one files depends on his or her tax liability, though many businesses, after they first register with the state, will be required to file monthly sales tax returns for a while. Numerous companies are eventually switched to quarterly reporting; however, the state will inform them in writing if they need to change to annual or monthly sales tax filings.
Those businesses that may report and pay sales tax to the state annually are supposed to have tax liabilities of less than $1,000 for the year. Annual filers are to send in their returns by the end of January. Those companies that have to file monthly sales tax returns need to have tax liabilities greater than $4,000 in 12 months. The 12-month period the state looks at is from July 1 to June 30.
Failing to report and pay sales tax accurately and on time can result in one being audited and, possibly, having to pay more in taxes, as well as hefty fines. Connecticut residents can seek assistance with figuring out their tax liability and when their returns have to be filed. If any issues arise with a filing, legal counsel can help one resolve the matter as quickly as possible.