We frequently represent taxpayers involved in Connecticut Department of Revenue Exams for Sales Tax, Withholding Tax and Income Tax as well as DRS criminal tax cases.  The DRS is clearly getting more aggressive in its attempt to collect taxes owed to the State of Connecticut.

Consider the following:

• The DRS Collection & Enforcement Division collected $122,235,123 in overdue tax revenue in fiscal year 2009.
• Using the federal refund offset program resulted in the division’s resolving 12,980 outstanding accounts and collecting $9,566,623 in fiscal year 2009.
• The DRS Special Investigations Unit made 179 arrests in 2009, a 100% increase since 2005 (when they made 90 arrests).  The restitution collected on the 190 cases in 2009 was $2.6 million.

It has been our experience over the last several years that the DRS is taking a very aggressive approach to both non-filers and delinquent taxpayers.  Put in perspective, Cal Meller from the DRS has been quoted several times discussing the issue of delinquent taxpayers:

“Businesses that pocket sales tax are stealing from the state and violating the trust of their customers.”

“Failure to remit sales and withholding taxes to the state is particularly disturbing. Customers don’t expect businesses to profit from the sales tax that they pay on top of the purchase price of a taxable product or service. And employees don’t expect the business they work for to siphon income tax withheld from their paychecks.”

The DRS has for years posted the “Top 100 List” which lists the top 100 delinquent individual taxpayers and the top 100 delinquent business taxpayers.  To further drive home this point, the DRS has now added a link to its “Arrest Summary” page right on the DRS homepage, reviewing all of the taxpayers and businesses pursued criminally for Connecticut State taxes.

If you wish to discuss a Connecticut state tax issue or an ongoing matter with the CT DRS please do not hesitate to contact us.