Connecticut sales tax:
DRS Arrests Business Owner for Failure to Pay Sales Tax

On November 30, Department of Revenue Services (DRS) enforcement agents arrested the owner of computer businesses in Groton and Branford for allegedly failing to pay more than $41,000 to the state.

Michael W. Hopkins, 55, of Groton, was charged with 25 counts of misdemeanor sales tax violations related to his three shoreline computer businesses.

In case of two of the businesses, BOA Systems, LLC of Branford and PC Cleaning and Recovery, LLC of Groton, Hopkins is alleged to have collected sales tax from customers and to have diverted the funds for other purposes in violation of the state's trust tax.

Hopkins was charged with nine counts of failure to pay more than $41,000 in state sales tax for BOA Systems and five counts of failure to pay a lesser sales tax amount for PC Cleaning and Recovery. He was also charged with 11 counts of failure to file sales tax returns for Computer Gaming Arena, LLC in Groton.

Hopkins was processed and released on a total of $15,000 in non-surety bonds. He will appear in the Harford Superior Court on January 7, 2010.  All of the charges against Hopkins are class A misdemeanors punishable by imprisonment of up to one year or a fine of up to $1,000, or both.

DRS Commissioner Richard D. Nicholson said that while the majority of taxpayers report and pay their state taxes according to the law, a strong enforcement arm is necessary for DRS to find and deal with those taxpayers who do not comply.

Commissioner Nicholson said, "The DRS will aggressively pursue and prosecute individuals who do not pay over sales tax they have collected. The taxpayers of the state need to have confidence that the tax they pay at the time of purchase is paid over to the state."

Other recent DRS arrests include the November 19 arrests of the owner of Per Tutti Pizza, LLC, 25 Grassy Plain Street in Bethel, and the November 24 arrest of the owner of Home Theatre Associates, 29 Gentile Place in Branford. Both men were arrested for alleged sales tax violations.

On November 19, New Fairfield resident Veton Dekaj, 28, owner of Per Tutti Pizza was issued a misdemeanor summons for operating a business with a suspended sales tax permit. He was released on a promise to appear in Danbury Superior Court on December 9, 2009. Dekaj was on the premises of Per Tutti Pizza when DRS agents conducted a permit inspection of the business. DRS suspended the business' sales tax permit on August 13, 2009, for failure to resolve outstanding tax liabilities.

Operating with a suspended sales tax permit is a class C misdemeanor punishable by a fine of up to $500 or imprisonment of up to three months, or both.

On Tuesday, November 24, DRS agents arrested Jeffrey Franklin, owner of Home Theater Associates of Branford. During the course of its operation, the business is alleged to have developed sales tax deficiencies and sales tax delinquencies with DRS.  Agents secured an arrest warrant affidavit for the accused for his outstanding tax liabilities. 

Agents processed Franklin at the East Haven Police Department. Franklin was released on a $5,000 non-surety bond to appear in Hartford Superior Court on December 11. The warrant charged Mr. Franklin with 6 counts of failure to pay sales tax in violation of sec. 12-428(1) and 3 counts of failure to file sales tax returns in violations of sec. 12-428(1).

The charges against Franklin are class A misdemeanors punishable by imprisonment of up to one year or a fine up to $1,000 or both.

Media calls should be directed to the communications office at (860) 297-5610.