Connecticut’s Voluntary Disclosure Program lets a business that has not met its Connecticut tax obligations come forward to the Connecticut Department of Revenue Services (DRS), agree on the periods and taxes to address, file the required returns or comparable worksheets, and pay the tax and interest due. DRS says qualifying participants benefit from a limited look-back period and no penalty imposed under the agreement. The exact terms depend on DRS’s review and the agreement; interest is still due.
For ecommerce and cross-border sellers, the first step is to check whether Connecticut registration and collection obligations apply to your sales, taxable services, or other activities. Connecticut uses a single statewide rate without local add-ons, so calculating the applicable rate is comparatively straightforward; deciding whether a transaction is taxable and whether you have a filing obligation still requires care. Registration is handled through myconneCT. Sales Tax Compliance USA is a people-led, done-for-you service that can help review your exposure, coordinate a disclosure, and manage the compliance work.
What Connecticut’s voluntary disclosure program covers
The Connecticut Department of Revenue Services’ Voluntary Disclosure Program is a way for taxpayers who are not in compliance with Connecticut tax laws to come forward and make arrangements to clear their tax records. DRS and the taxpayer establish the taxes and periods covered by the agreement. The taxpayer then files the returns or comparable worksheets required for those periods and pays the tax and interest due.
For a seller, the issue may involve uncollected sales tax, unpaid use tax, or another Connecticut tax obligation. The program is not simply a registration application: it addresses past noncompliance as well as the steps needed to bring the account into compliance. DRS describes a limited look-back and no penalty imposed for participants, subject to the agreement and the taxpayer meeting its terms.
Who qualifies—and what if Connecticut has contacted you?
DRS describes the program as an opportunity for businesses and individuals that have not complied with Connecticut tax laws to come forward voluntarily. Its published program information excludes a taxpayer who is currently being audited by DRS or has an outstanding tax bill. Eligibility is determined by DRS, so a business should not assume it qualifies solely because it has not received a sales tax notice.
If DRS has already contacted you, do not treat the contact as routine or assume a VDA remains available. The published eligibility information identifies an active audit and an outstanding tax bill as disqualifying circumstances, but the effect of a particular notice depends on what it says and the status of the account. Review the notice promptly and ask DRS or a qualified representative whether the program is still available before submitting a disclosure.
Which Connecticut taxes can you disclose?
Connecticut’s program is for Connecticut tax noncompliance, and the application asks the taxpayer to identify the type of tax involved. For ecommerce sellers, sales and use tax is often the central concern: DRS requires registration for businesses intending to sell, rent, or lease goods, sell taxable services, or operate specified lodging businesses. A disclosure may also need to address other Connecticut tax types if the business has obligations beyond sales and use tax.
Do not assume every product, service, or transaction is taxable—or that sales tax is the only relevant tax. Connecticut taxes most goods and certain enumerated services, and use tax can apply when taxable purchases for use in Connecticut were not charged Connecticut tax. DRS’s program materials do not provide a one-size-fits-all list of taxes or a universal eligibility decision for every business. Identify the activities and tax types with DRS as part of the application.
Check your Connecticut nexus and registration obligations
Review where you make sales, what you sell, and how your business operates in Connecticut. DRS says an out-of-state seller must register and obtain a sales and use tax permit when its Connecticut sales meet the state’s stated economic-nexus test. The test uses sales to Connecticut destinations during a specified 12-month measurement period; check the current DRS rule and your own sales records rather than relying on an old threshold or an assumed marketplace treatment.
Connecticut is not a home-rule sales tax state: local jurisdictions do not administer separate local sales taxes. The state applies a single statewide rate with no local add-ons, although special rates apply to certain transactions. DRS lists 6.35% for most goods and taxable services and identifies other rates for specified categories. Registration is completed through myconneCT, but registering now does not by itself resolve any past liability.
How far back must you file Connecticut returns?
There is no single look-back period that should be assumed for every Connecticut VDA. DRS says the taxpayer must pay tax and interest for the period determined by the Voluntary Disclosure Agreement and describes a limited look-back as a program benefit. The period is therefore something to establish with DRS through the disclosure process, not a number to guess in advance.
Gather records that help DRS assess the business’s Connecticut activity and potential liability, including sales by destination, transaction dates, product or service descriptions, tax collected, and prior filings or registrations. The agreement will determine which periods require returns or comparable worksheets. If records are incomplete or the business has multiple tax types, explain that clearly and get help reconciling the available data before making a formal submission.
Understand potential penalty and interest relief
DRS states that a taxpayer accepted into the Voluntary Disclosure Program benefits by not having a penalty imposed and by receiving a limited look-back period. These benefits are tied to the agreement and the taxpayer’s compliance with its requirements; they are not a guarantee that every applicant will be accepted or that every charge will be removed.
Interest is not waived under the program. DRS requires payment of the tax and interest due for the agreed periods. The amount and terms depend on the liability and agreement, so do not estimate relief by applying a general penalty or interest rule to your account. Confirm the calculation and payment requirements with DRS or have a representative review them with you.
How the Connecticut VDA application process works
Start by reviewing the business’s Connecticut activities and identifying the tax types that may be involved. DRS permits taxpayers to make an anonymous inquiry to learn about the program. A formal request to participate must be in writing and should state the type of tax, describe the applicant’s Connecticut activities, give the starting date of those activities, explain the reason for noncompliance, and estimate the potential tax liability.
DRS reviews the request and notifies the taxpayer or its representative whether it is accepted or denied. If accepted, the parties establish the agreement’s terms, including the periods to address. The taxpayer must then file the returns or comparable worksheets for those periods and pay the tax and interest due. Follow the instructions and submission details on the current DRS Voluntary Disclosure Program page, since contact and filing procedures can change.
Can you apply anonymously?
Yes. DRS says taxpayers may contact the department anonymously to learn more about the Voluntary Disclosure Program and that it will not seek to identify people who wish to remain unidentified during that inquiry. A formal request to participate must be in writing and include information about the applicant’s activities and potential liability.
If you want to remain anonymous during the formal application, DRS says you may engage a taxpayer representative, such as a tax preparer, accountant, or attorney. Anonymity is not a substitute for providing the information DRS needs to evaluate the request. Confirm the current submission process with DRS or your representative before sending identifying details.
File returns, pay tax due, and stay compliant
Once the agreement sets the covered periods, complete the required returns or comparable worksheets and pay the tax and interest specified. For ongoing sales and use tax registration, DRS uses myconneCT. The filing frequency and due dates assigned to your account should be checked in your DRS account and current instructions; do not assume a frequency based on another state or another business.
After the past periods are resolved, maintain transaction-level records, review product taxability and shipping destinations, and reconcile tax collected with returns and payments. Connecticut’s statewide rate without local add-ons simplifies rate calculation, but special rates and taxable-service rules still matter. Keep your registration details current in myconneCT and ask DRS or a compliance professional to review changes in your sales channels or business activities.
Get hands-on help with your Connecticut disclosure
A VDA involves more than completing a form: a seller needs to understand its Connecticut activity, identify the relevant tax types, assemble records, estimate exposure, and follow the agreement’s filing and payment terms. Sales Tax Compliance USA is a done-for-you service staffed by people, not a software product. We can help ecommerce and cross-border sellers review their facts, prepare the information for a disclosure, coordinate the process, and support ongoing filing and registration work.
Every business’s position depends on its activities, records, and any contact already received from DRS. We do not promise acceptance, a particular look-back period, or a specific amount of relief. If you are unsure whether you qualify or what periods may be involved, we can help you check the facts and confirm the current position with the Connecticut Department of Revenue Services.
Examples of Connecticut sales and use tax categories and the DRS-listed rates; confirm the current treatment of a specific transaction with DRS.
| Transaction category | Connecticut treatment shown by DRS |
|---|---|
| Most goods and taxable services | General rate of 6.35% |
| Computer and data processing services | Special rate of 1% |
| Meals and certain beverages | Special rate of 7.35% |
| Passenger motor vehicle rental or lease for 30 consecutive calendar days or less | Special rate of 9.35% |
| Goods or services not subject to Connecticut sales tax | Not subject to use tax on that basis; check the transaction’s specific facts |
Frequently asked questions
What is Connecticut’s Voluntary Disclosure Program?
It is a Connecticut Department of Revenue Services program through which a noncompliant taxpayer can come forward, agree on the taxes and periods to address, file the required returns or comparable worksheets, and pay tax and interest. DRS describes a limited look-back and no penalty imposed for qualifying participants who meet the agreement’s terms.
Who is eligible for Connecticut’s Voluntary Disclosure Program?
The program is for businesses and individuals that have not complied with Connecticut tax laws and voluntarily come forward. DRS’s published information says a taxpayer currently being audited by DRS or with an outstanding tax bill may not apply. DRS decides eligibility based on the circumstances and application.
Can a business apply anonymously?
A business may make an anonymous inquiry to DRS to learn about the program. A formal written request must include information about the tax, Connecticut activities, start of activity, reason for noncompliance, and potential liability. DRS says a taxpayer may use a representative to remain anonymous during the formal application.
What taxes can be disclosed through the program?
The application identifies the type of Connecticut tax involved, and the program addresses Connecticut tax noncompliance. For sellers, this may include sales and use tax; other tax types may be relevant depending on the business. Confirm the applicable taxes with DRS based on the business’s activities.
How far back does Connecticut require returns?
DRS determines the covered period through the Voluntary Disclosure Agreement; there is no universal look-back period to assume for every applicant. The taxpayer must file returns or comparable worksheets for the periods agreed upon. Ask DRS or a representative to confirm the period for your case.
Are penalties or interest waived?
DRS says qualifying participants benefit from no penalty being imposed and a limited look-back period, subject to the agreement. Interest is not waived: the taxpayer must pay the interest due along with the tax for the agreed periods.
How do you apply for a Connecticut voluntary disclosure agreement?
Make an anonymous inquiry if you first want to discuss the program without identifying the taxpayer, then submit a formal written request with the tax type, Connecticut activities, start date, reason for noncompliance, and estimated potential liability. DRS reviews the request and notifies the taxpayer or representative whether it is accepted. If accepted, follow the agreement’s filing and payment requirements.
What happens if Connecticut has already contacted the taxpayer?
Review the communication and determine whether it is an audit notice, an outstanding tax bill, or another type of contact. DRS’s published eligibility information says a taxpayer currently under audit or with an outstanding tax bill may not apply, so do not assume a VDA is available. Contact DRS or a qualified representative promptly to assess the notice and next steps.
How we handle this for you
The mechanics in Connecticut are manageable on their own; the cost is the time it takes every single filing period, in every state you are registered in. We are a managed service: our team registers you with the Connecticut Department of Revenue Services, prepares and files your returns, and keeps you compliant period after period. You get one point of contact and one invoice — you do not get another dashboard to learn.
See our sales tax compliance services, check where you have obligations with the nexus calculator, or talk to us about Connecticut.
Official sources
- https://portal.ct.gov/DRS/Voluntary-Disclosure/Voluntary-Disclosure-Program
- https://portal.ct.gov/drs/sales-tax/tax-information
- https://portal.ct.gov/drs/drs-forms/registration/register-your-business
- https://portal.ct.gov/drs/sales-tax/services-subject-to-sales-and-use-taxes
- https://portal.ct.gov/drs/myconnect/filing-and-paying
- https://portal.ct.gov/drs/voluntary-disclosure/voluntary-disclosure-programs
Reviewed by Paul le Roux, CA(SA). Sales Tax Compliance USA handles US sales tax registration, filing and remittance for cross-border and domestic ecommerce sellers as a fully managed service.
This page is general information for educational purposes and does not constitute legal or tax advice. Sales tax rules change and depend on your specific facts. Consult a qualified tax professional about your own position.