A Connecticut initiative to crack down on businesses that have not paid their taxes has brought 3,951 businesses back into compliance and collected $12.5 million, the state Department of Revenue Services announced Wednesday.
Starting last year, the department stopped renewing required state tax permits for businesses that owed taxes related to Connecticut sales. The businesses were told they could not renew their state tax registration until making all outstanding payments. If not registered, businesses cannot make taxable sales or operate within the state.
“When businesses fail to collect and pay taxes, they do not pay their fair share and compete unfairly with the vast majority of businesses that do the right thing,” Kevin Sullivan, DRS commissioner, said in a statement. “Also, collecting what’s due is the best way to control taxes. This DRS initiative will continue to improve ongoing tax compliance and increased collection of existing taxes.”
