The Connecticut Department of Revenue Services (DRS) has announced that it will roll out a new initiative during the next fiscal year to expand tax collections and reduce the tax gap. The initiative, which is not another tax amnesty program, will have two parts:
- enhanced collections resulting from working with taxpayers that were not eligible for the 2013 tax amnesty or did not take advantage of it, pursuing non-filers, and resolving disputed tax shifting resulting from business transfer payments; and
- various efforts focusing on closing the tax gap through expanded federal and interstate tax data matching, responsible person billing for businesses not remitting or not filing taxes, increased interagency data matching, expanded interagency tax clearances and offsets against state payments, and tax fraud reduction.
The DRS estimates that the new initiative will produce at least $75 million that is owed to the state. (News Release, Connecticut Department of Revenue Services, May 5, 2014.)
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