State Extends Small Business Sales Tax Deadlines

Connecticut’s Department of Revenue Services March 30 granted small businesses an automatic extension of filing and payment deadlines for state sales and room and occupancy taxes.

The move follows an executive order signed the same day by Gov. Ned Lamont and extends deadlines for March and April monthly and quarterly payments to May 31, 2020.

“The state needs to be taking all steps possible to provide relief to our small businesses during this public health emergency,” Lamont said in a statement.

Taxpayers who file and pay on or before the extended deadlines will not be subject to penalties or interest.

To qualify for the automatic extension, taxpayers must have $150,000 or less in annual sales tax liability.

Taxpayers with $150,000 or less in annual room occupancy tax also qualify for relief.

Look Back Period

DRS advises businesses to use 2019 calendar year sales and occupancy tax payments—Jan. 1, 2020 thorough Dec. 31, 2020—to determine eligibility.

A business that collects both sales tax and room occupancy tax must evaluate each tax separately.

“DRS acknowledges that small businesses may need additional time to access their records and consult with their tax preparer,” said acting DRS commissioner John Biello.

Earlier this month, Connecticut followed the federal government and extended income tax filing and payment deadlines three months to July 15, 2020.

For more information, contact CBIA’s Eric Gjede (860.480.1784) | @egjede