Rhode Island is stepping up its efforts to ensure businesses meet their annual tax filing and payment obligations. Starting January 1, 2025, the Division of Taxation and Secretary of State will have new statutory authority to implement a system to monitor and enforce tax compliance. This change will have serious consequences for businesses that have neglected their tax obligations.

The Division of Taxation will now have the ability to share tax compliance information with the Secretary of State. Businesses with unpaid taxes risk being unable to file annual reports or obtain certificates of good standing from the Secretary of State. Tax noncompliance may also lead to the revocation of a business’ charter, as well as late fees and penalties at the Division of Taxation. Additionally, a revoked charter may jeopardize a business’s ability to utilize bank accounts, secure financing, and obtain or renew state or municipal licenses.

This move is part of Rhode Island's strategy to reduce delinquent taxes, modernize its processes, and ensure businesses stay informed of and compliant with their tax obligations. To stay compliant, all entities – including entities with no business activity – must file an annual Rhode Island entity tax return and pay the required annual franchise tax.