It's a new year, and that means the state of Connecticut has new laws that have gone into effect. For instance, changes were made to sales tax laws. These adjustments could hurt some people if they fail to pay or collect sales tax properly. What are these changes?
A small business owner in another state -- who focuses on selling products online through Amazon -- recently received a tax bill that has turned his whole world upside down. He supposedly owes roughly $1.6 million in sales tax to the state of California because his product was stored at a facility there. He is currently fighting the matter, as he claims the storage location of his items was not made known to him, so it is unclear how his story will end. His experience, though, can serve as a cautionary tale for Connecticut residents who are also online sellers.
In Connecticut, business owners have to pay various taxes to the state. Failure to pay all applicable taxes can have significant consequences. There is one type of tax that some may not understand or think applies to them, and that is use tax. This week, this column will discuss a bit about use tax and how it varies from sales tax.
Business owners in Connecticut have a lot that they have to worry about when it comes to taxes. Lawmakers are considering a change that will give them even more to stress over. According to a recent article, there is a bill currently under review that includes a provision for real-time sales tax collection. How would that work and at what cost?
Connecticut residents who have to collect taxes on items that they sell may find tax season a bit of a nightmare. Sales tax rules can be complicated and are often changing. This means that, despite one's best efforts, one might be picked for an audit at some point. Here are some things that can help one through a sales tax audit.
Lawmakers in Connecticut are trying to decide if they should increase taxes on certain products that are for sale in the state. Sales tax laws are frequently changing, so this is not an out-of-the-blue thing. It is something that business owners and residents need to follow, though, because if changes are made, they need to adjust how much they collect or pay on these items.
Business owners in Connecticut have a lot of responsibilities. Dealing with sales tax is one of them. Connecticut is, after all, of the many states that require sales tax be collected, reported and paid on all taxable products and services.
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.
Connecticut residents who make a lot of big purchases throughout the year may wonder if they can use that to their advantage come tax time. The answer is, maybe. It may be possible to deduct sales tax and reduce the amount of taxes one owes. How does that work?
Business owners -- whether they are based in Connecticut or elsewhere -- have a lot of tax concerns compared to the typical person. Not only do they have to worry about filing their own income and business taxes, they also have to worry about making sure they collect and pay appropriate sales tax. This week's column will be a quick overview of sales tax basics.