1. The Streamlined Sales and Use Tax Agreement allows states that adopt it to collect sales taxes on online and other remote sales. What are the advantages and disadvantages for Connecticut's participation and would you recommend that the legislature consider joining the agreement?

2. What are the biggest challenges the Department of Revenue Services (DRS) faces in administering the many tax law changes the legislature passes each year?

3. Connecticut has adopted many new taxes, tax exemptions, credits, phase-outs, and other special tax provisions over the last 15 years. Do you think the complexity of the state's tax laws is a burden for taxpayers? Do you have recommendations for simplifying and streamlining the state's tax laws?

4. In its January 2006 report on Connecticut's tax system, the Program Review and Investigations Committee recommended that DRS estimate the annual “tax gap” for the state, which is the difference between the amount of taxes owed under full compliance with all tax laws and the amount voluntarily paid. Can DRS estimate the state tax gap? Do you think an estimate would help the department and the legislature pinpoint areas of tax avoidance and formulate strategies to address them?

5. One area of tax avoidance the IRS frequently cites is unreported income, particularly partnership, S corporation, and other pass-through entity income that is supposed to be reported as personal income. Connecticut recently amended its law to require pass-through entities to withhold income taxes on distributions to out-of-state partners and members. Has this change helped Connecticut's tax collections in this area? Do you have other recommendations for addressing this issue?

6. Many legislators are interested in evaluating the effectiveness of economic development tax incentives for businesses, but DRS is legally prohibited from identifying the businesses that receive them. Do you have any suggestions for resolving this conflict?

7. In 2003, Governing Magazine noted that Connecticut lagged other states in its use of electronic filing by taxpayers. What is the current status of electronic filing by individuals and businesses? What are the major impediments to increasing the number of electronic filers? What steps has the department taken in the past two years to encourage and facilitate electronic filing?

8. In 2005, the legislature gave DRS more tools to go after promoters and users of abusive tax shelters. What has been the result of this initiative and is it continuing?

9. The Program Review study cited the high cost and slow implementation of the department's automated information system, known as ITAS. What is the current status of ITAS and when will it be fully implemented?

10. The legislature is considering several bills this session that would allow towns and regions to levy sales or income taxes or require the state to return a portion of the revenue it collects to these jurisdictions.   What kinds of administrative issues need to be addressed in order to implement either option? What kinds of changes would businesses have to make to collect and remit local sales and income taxes?

11. How do changes in federal tax law affect Connecticut corporate and income taxes and tax revenues?