DRS: Change in Tax Permit Renewals Continues to Improve Taxpayer Compliance

Change in Tax Permit Renewals Continues to Improve Taxpayer Compliance


For Immediate Release:
Monday, January 10, 2014


Hartford – Six months after changing the way various state tax permits are renewed, Connecticut Revenue Services Commissioner Kevin Sullivan said the practice continues to bring in big dividends for the State of Connecticut. To date, the measure has brought in nearly $3.7 million in back taxes and brought almost 1,700 businesses back into compliance.


Said Commissioner Sullivan, “There’s an old song that says ‘Little things mean a lot.” This initiative proves that point. Governor Malloy is clear that for government to work better, we must work smarter.  No longer letting taxpayers renew sales tax, cigarette tax, or tobacco products tax permits until they pay what they owe is common sense, fair and long overdue.”


In July, the Department of Revenue Services (DRS) started sending letters to businesses about to renew their tax permits that also had unpaid tax debts. The letters said that unless the businesses paid their back taxes in full, or entered into a reasonable payment plan, the permit needed to legally operate their business would not be renewed. It also told the scofflaws that continuing to operate without the proper permit could lead to financial and criminal penalties.      


Said Commissioner Sullivan, “The majority of the state’s business owners are honest, hardworking people who pay their taxes on time. To allow delinquent taxpayers the same privileges without holding them accountable is just wrong.”


The new procedure has collected $3,663,723 in back taxes from 1,694 businesses and could generate $5-10 million annually over the next several years. 


Media calls should be directed to the communications office at (860)297-5610 or emailed to sarah.kaufman@po.state.ct.us.

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Content Last Modified on 2/14/2014 8:48:59 AM