Last July, the Connecticut Department of Revenue Services (FRS) instituted a new policy: businesses with outstanding tax balances may not renew their seller’s permit until all taxes are paid. Anyone considering staying open without a permit is encouraged to think again. Letters sent last summer to delinquent businesses “told the scofflaws that continuing to operate without the proper permit could lead to financial and criminal penalties.”
This week, DRS announced that the policy is having the desired effect. “To date, the measure has brought in nearly $3.7 million in back taxes and brought almost 1,700 businesses back into compliance.” Connecticut scofflaws are becoming law-abiding, tax-compliant citizens.
The new policy is expected to generate somewhere between $5 and $10 million annually during the next several years.
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