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Connecticut Tax Amnesty Program

June 19, 2013

Cynthia J. Teixeira, CPA
Tax Manager

The Connecticut legislature passed Public Act 13-184, which includes a tax amnesty program.  The tax amnesty program will cover all state taxes except for motor carrier road taxes and is available for any taxable period ending on or before November 30, 2012. 

Tax Amensty Application

All taxpayers are eligible to participate in the amnesty program except for those who (1) are parties to any criminal investigation or criminal litigation pending on July 1, 2013 in any federal or Connecticut court; (2) are parties to a closing agreement with the Department of Revenue Services (DRS); (3) have made a compromise offer that has been accepted by DRS; or (4) are parties to a managed audit agreement. 

The application period for the amnesty program will take place from September 16, 2013 to November 15, 2013.  If a taxpayer files the application during the amnesty period and pays all taxes owed for the applicable tax periods, plus reduced interest (see below), the Commissioner of Revenue Services will waive applicable civil penalties and refrain from seeking criminal prosecution for those periods.  In addition, a taxpayer will receive a 75% reduction of interest due and payable as of the date of filing the amnesty application, provided such interest and taxes are paid in full by November 15, 2013.

If amnesty is granted, the taxpayer will forfeit any and all rights of appeal both administrative and judicial, forego any right to a refund for amounts paid under amnesty and make full payment of all tax and interest by November 15, 2013.  Failure to pay amounts due invalidates the amnesty. 

A taxpayer that is required to file a Connecticut tax return, but has not done so and who does not participate in the amnesty program will be assessed a mandatory, non-waivable post-amnesty 25% additional penalty on the tax due when the DRS ultimately issues an assessment.  There is no expiration date in the new statute for this provision.

Tax Amensty Questions 

We will issue further information once the Department of Revenue issues interpretive guidance.  If there are any questions, please feel free to contact any of the following members of our State and Local Tax Group:

Cynthia Teixeira
(860) 570.6394
cteixeira@blumshapiro.com

Tony Switajewski
(860) 561.6810
tswitajewski@blumshapiro.com

 Doug Joseph
(860) 561.6829
djoseph@blumshapiro.com

Disclaimer: Under U.S. Treasury Department guidelines, we hereby inform you that (1) any tax advice contained in this communication is not intended or written to be used, and cannot be used by you, for the purpose of avoiding penalties that may be imposed on you by the Internal Revenue Service (or state and local or other tax authorities), and (2) no part of any tax advice contained in this communication is intended to be used, and cannot be used, by any party to promote, market or recommend any transaction or tax-related matter(s) addressed herein without the express and written consent of Blum, Shapiro & Company, P.C.

 

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