Connecticut Bill Criminalizes Tax Zappers

May 25, 2012 | Susan McLain

Connecticut House Bill 5421 (HB 5421) is “AN ACT CONCERNING ‘ZAPPERS’. To make it a felony to sell, purchase, install, transfer or possess an automated sales suppression device (‘zapper’) or phantom-ware that eliminates point-of-sale transactions randomly, and creates a shadow record of the sale, making it difficult to detect understated records of sales and sales tax liability.”

Violators will be subject to “…a fine of up to $ 100,000, one to five years in prison, or both.” In addition, they will be “…liable for all taxes, penalties, and interest due as a result of the crime and…forfeit all profits associated with the sale or use of the zapper or phantom-ware.”

The bill has been passed by the Senate and the House. Once fully approved, the law goes into effect July 1, 2012.

Connecticut joins these other states who have considered or implemented tax zapper laws:

Get Free Tax Rate Tables

Connecticut State Rates

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.

Avalara Author

Susan McLain

Avalara Author Susan McLain

Susan McLain began her career as a technical writer in technology industries such as satellite networking and medical devices. Her skills encompass technical and marketing writing, usability engineering, verification and validation testing and protocol writing, requirements development, business analysis, technical illustration/graphic design and marketing. She has owned her own business providing service to small to medium sized business and in other positions, she has been in project management, documentation and marketing. She is currently the content specialist for Avalara helping to “make sales tax less taxing.”