If you sell, rent or lease goods in Connecticut, you are required to obtain a Sales and Use Tax Permit from the Department of Revenue Services. Businesses that provide certain services are also required to obtain this type of permit. You must obtain this permit before you sell goods or provide services. Additionally, if you purchased a business, you must obtain your own permit. Permits are not transferable.
In addition to obtaining the permit, you must collect and pay sales and use tax for your business. Whether or not you collect this tax from your customers, you are required to pay it. Failure to pay sales and use tax in Connecticut can result in serious penalties and additional costs. Sales and Use taxes create personal liability to the owners of the business or any other responsible parties.
At The Law Offices of Neil Crane, LLC, we know the impact a tax debt can have on your bottom line. As debts add up over time and penalties and interest grow, your debts may become overwhelming. You may risk losing your business.
Since 1983, our lawyers have provided clients throughout Connecticut with knowledgeable advice about tax debt, bankruptcy and other debt relief solutions. Contact our law firm online, or call us at 203-230-2233 for a free initial consultation about your delinquent state sales and use tax concerns.
Penalties for Failing to Pay Sales Tax in Connecticut
The sales tax rate in Connecticut is 6 percent. The penalty for failure to pay Connecticut sales tax is 15 percent of the tax you owe. Interest will also grow over time at a rate of 1 percent per month. The penalty can be lowered if you pay your sales tax electronically. Additionally, you may be able to avoid paying a penalty (but not interest) if you had reasonable cause to not pay your taxes.
In addition to penalties and interest, the Department of Revenue Services can take action to collect the taxes you owe against you personally. This may include seizure of assets or liens on your property. Our attorneys will work directly with you to help you avoid these collection actions. Through bankruptcy, you can put a stop to a collection action. If bankruptcy is not an option, we negotiate on your behalf to obtain an installment agreement, offer in compromise or other resolution to your tax burden.
Use Tax for Individuals and Businesses
Use tax applies to all taxable purchases where Connecticut sales tax was not paid. The most common example of this is with out-of-state purchases. You are required to pay a use tax on goods and taxable services you purchase from another state. If you paid sales tax in the other state, you will owe only the amount of Connecticut sales tax that exceeds what you already paid.
Use tax applies to both individuals and businesses in Connecticut. The penalties and collection practices for use tax are the same in Connecticut as those for sales tax.
Exemptions From Sales and Use Tax
There are a large number of exemptions from sales and use tax available in Connecticut. For example, clothing under $50, child car seats, fuel and prescription medications are just a few of exemptions to sales and use tax. We can help you understand the exemptions and how they may apply to in your case. Our attorneys can also advise you or your business regarding record keeping practices so you can take full advantage of every exemption available to you.
Contact Our Bridgeport Delinquent Tax Relief Attorneys
At our firm, we represent individuals, families and businesses that are facing collection actions in Connecticut. Let us help you get the debt relief you need and avoid further penalties. Call us at 203-230-2233, or contact us online for a free initial consultation. We have office locations in Hamden, New Haven, Bridgeport, Ridgefield, Waterbury and Rocky Hill so we can provide you with the local representation you need.