Don’t mess with the DRS. Just don’t do it. Trust me. The DRS makes several arrests each quarter for Connecticut tax violations. Does that sound impossible to you? Go ahead, take a look.
A fellow attorney, wrote a post about the different services that are subject to sales tax in Connecticut. And business owners should take a look. The truth is, that many different types of services are subject to sales tax, some might surprise you.
It is very important to comply with DRS requirements regarding sales tax. File on time, and pay on time. Even as important is keeping adequate records to back up your reporting in the case of an audit. When the DRS audits taxpayers and they do not have the proper records, the DRS will just make the numbers up. I’ve seen it happen. And since you are wondering, NO z-tapes are not enough. If you use a cash register, you should keep a running tape so that you can provide back up (including dates) for every transaction.
Not all is lost if you have not fully complied with DRS reporting and payment requirements. The best thing to do is to come into compliance immediately. Consult with a Connecticut Attorney or other qualified professional to discuss your options.