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Connecticut Grants Businesses and Individuals Certain Tax Extensions

As the extraordinary global pandemic of Coronavirus Disease 19 (COVID-19) continues to disrupt daily life on an unprecedented scale, Connecticut’s businesses should know that the Connecticut Department of Revenue Services (DRS) has taken steps to provide them with support.

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Insights  <  Connecticut Grants Businesses and Individuals Certain Tax Extensions to Cope with Coronavirus Outbreak

As the extraordinary global pandemic of Coronavirus Disease 19 (COVID-19) continues to disrupt daily life on an unprecedented scale, Connecticut’s businesses should know that the Connecticut Department of Revenue Services (DRS) has taken steps to provide them with support.

As the extraordinary global pandemic of Coronavirus Disease 19 (COVID-19) continues to disrupt daily life on an unprecedented scale, Connecticut’s businesses and individuals should know that the Connecticut Department of Revenue Services (DRS) has taken steps to provide them with support.

Effective immediately, DRS announced it is using its authority to grant an automatic extension of Connecticut filing and payment deadlines for certain annual business tax returns and personal income tax returns, in order to help businesses and individuals  cope with the impact of the pandemic. The filing deadlines for these tax returns due on or after March 15, 2020, and before June 1, 2020, have been extended by at least 30 days by DRS, and the payments associated with these returns are also extended.

Acting DRS Commissioner John Biello issued this statement with respect to businesses in a recent press release regarding the extensions of certain business filing deadlines:

“DRS understands some business taxpayers may find it difficult to meet state tax filing deadlines, given current circumstances. This extension is designed to support these taxpayers, and tax practitioners, meet their responsibility to file returns and remit payments. DRS encourages those with questions specific to their own, individual circumstances to call or e-mail the agency.”

Among the business extensions being granted are as follows:

2019 Form CT-1065/CT-1120 SI Connecticut Pass-Though Entity Tax Return. The filing date has been extended to April 15, 2020, and the payment deadline has been extended to June 15, 2020.

2019 Form CT-990T Connecticut Unrelated Business Income Tax Return. The filing date has been extended to June 15, 2020, and the payment deadline has been extended to June 15, 2020.

2019 Form CT-1120 and CT-1120CU Connecticut Corporation Business Return. The filing date has been extended to June 15, 2020, and the payment deadline extended to June 15, 2020.

2020 Sales Tax and Room Occupancy Tax: DRS is granting an automatic extension of filing and payment deadlines for Sales Tax and Room Occupancy Tax for “small businesses.” Businesses that have $150,000 or less in annual Sales Tax liability (for 2019) qualify for an automatic extension of time to file and pay. Similarly, businesses that have $150,000 or less in annual Room Occupancy Tax (for 2019) also qualify for this relief.

  • For monthly Sales Tax and Room Occupancy Tax filers: Returns and payments due March 31, 2020 and April 30, 2020 are extended to May 31, 2020.
  • For quarterly Sales Tax and Room Occupancy Tax filers: Returns and payments due April 30, 2020 are extended to May 31, 2020.

Property Taxation: In early April 2020, Governor Lamont issued Executive Order No. 7S, providing Connecticut property tax relief to COVID-19 affected taxpayers.  The Executive Order, among other items, directs municipalities to establish two property tax relief programs. For further details click here >>

In addition, the DRS has  announced an extension of the filing and payment date for individual tax returns that are originally due April 15 to July 15 (to align with the IRS’s filing and payment extension date).  The extension also applies to Connecticut estimated income tax payments for the first and second quarter of 2020. 

The DRS has answered frequently asked questions with respect to the due dates of Connecticut tax returns and tax payments, which you can access here.

Tax officials across the country, at both a state and federal level, have agreed that the uncertainty caused by the COVID-19 pandemic will assuredly lead to confusion and numerous questions regarding filing deadlines, payments and compliance. Connecticut is by no means in this alone, as every business in the nation is certainly feeling the impact right now.

Download our charts for up-to-date information on Connecticut, Massachusetts and Rhode Island tax filing and payment deadlines.

It seems the good news through all of this is that federal and state leaders and tax authorities seem to be considering the needs and concerns of businesses and individuals and have taken actions to try and blunt some of the enormous economic impact they are feeling as the outbreak continues. These extensions granted for Connecticut businesses are evidence of that.

As this situation progresses, businesses  and individuals are being encouraged to check the DRS website on a regular basis at www.ct.gov/drs. Connecticut has also established a special link to all pertinent COVID-19 information and developments at www.ct.gov/coronavirus. DRS is also urging people with questions to either email them at DRS@po.state.ct.us or call them 860-297-5962 (from anywhere); 800-382-9463 (within Connecticut and outside Greater Hartford area only); or 860-297-4911 (for hearing impaired callers only).

In addition, should you have any questions, you may reach out to Tony Switajewski, State and Local Tax Practice Leader, at tswitajewski@blumshapiro.com, who is monitoring Connecticut’s and other states’ tax payment and filing requirements in reaction to COVID-19.

As a member of the CBIA and CTCPA Connecticut Taxation Committees, should you have any thoughts on how the state can provide you with immediate or future potential tax relief, please email Tony Switajewski, tswitajewski@blumshapiro.com.

COVID-19 Business Resources

 

Disclaimer: Any written tax content, comments, or advice contained in this article is limited to the matters specifically set forth herein. Such content, comments, or advice may be based on tax statutes, regulations, and administrative and judicial interpretations thereof and we have no obligation to update any content, comments or advice for retroactive or prospective changes to such authorities. This communication is not intended to address the potential application of penalties and interest, for which the taxpayer is responsible, that may be imposed for non-compliance with tax law.

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