Connecticut DRS Update

This is just a quick note to Connecticut business owners and taxpayers: 

 We attended a recent presentation by representatives of the Department of Revenue Services (DRS), where it was mentioned that the audit department is creating new teams focused on small businesses and sales tax issues.  One particular interest for these teams?  Cash-intensive businesses (hairdressers, laundromats, etc.). 

 We wanted to alert the small business owners in our audience as a reminder to keep good records in general in addition to track and remit sales tax properly and on time.  The IRS has helpful publications with tips on general business record keeping. For Connecticut information, the DRS webinar page is a good first stop.   

 In addition, the Connecticut General Assembly has asked the DRS to make an estimate of the “tax gap” (the difference between what is collected in taxes and what that number should be if everyone was compliant). That’s not in itself alarming, but we’ve seen this play out before at the Federal level. The US Treasury and IRS began making such estimates which, along with a GAO report on the number of non-filers, provided the motivation for Congress to increase IRS funding a few years later.  

 While there’s no indication at this time of history repeating itself in the Nutmeg State, we do recognize that, in a world where state budgets feel squeezed, a set of figures that justifies increased tax collection efforts probably would be of interest to lawmakers. Keep an eye on this one!  

 Sunstone Bookkeeping and Tax Solutions can help with these issues: 

• If you want general assistance on a particular bookkeeping or tax item, a One-Hour Bookkeeper session might be right for you.   

• If you are starting a business (or, at a point where you need to “re-start” your recordkeeping) we have a Right Start Bookkeeping Service to get your accounting processes set up for both tax compliance and business success.   

• If you’ve gotten bad news in the form of a notice from the DRS or IRS, our tax expert can review your filing and represent you if necessary to help you get the best possible resolution.

 

 Just reach us at info@sunstonebookkeeping.com