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Connecticut Tax Amnesty Program Deadline Arrives at End of January

  • Businesses and individuals in Connecticut have until Jan. 31 to take advantage of a tax amnesty program
  • Program allows repayment of missed taxes at a 75 percent reduced interest rate and waives penalties
  • Amnesty is available for numerous circumstances, including missed filings and failing to report all tax that was due

Summary by Dirk Langeveld

Businesses and individuals in Connecticut have one week to resolve certain tax issues penalty-free under an amnesty program that began in November.

The program will conclude on Jan. 31. Until this point, participants in the program can pay back missed taxes at a 75 percent reduced interest rate. The amnesty period also waives any penalties, including the possibility of criminal prosecution.

While the Department of Revenue Services acknowledges the unique challenges created by the COVID-19 pandemic, it also extends amnesty to any tax period ending on or before Dec. 31, 2020. Participation is not mandatory, but the department describes the program as an opportunity to “significantly satisfy outstanding tax liabilities on a favorable basis.”

Those eligible to participate in the tax amnesty program include businesses and individuals who:

  • Have not filed a tax return with DRS as required by law
  • Previously filed a return but did not report all tax that was due
  • Have a current unpaid tax liability
  • Are currently under audit by DRS for periods ending on or before Dec. 31, 2020
  • Have a protest pending before DRS’s Appellate Division
  • Are pursuing civil litigation with DRS

Amnesty is not available to anyone who is under criminal investigation or had criminal charges pending as of Nov. 1, to any business that is party to a closing agreement or that has made an Offer of Compromise, or to any party to a managed audit agreement. While amnesty is available on most state taxes, it does not apply to the Connecticut motor carrier road tax.

This is the seventh tax amnesty program launched in Connecticut since 1990, but DRS Commissioner Mark Boughton has warned that no additional programs are planned for the foreseeable future. About 10,000 people have used the current program, with the state recovering about $40 million so far. Governor Ned Lamont’s administration has estimated that the program will generate about $80 million over this fiscal year and the next.

Participation in the program is not mandatory, but those with outstanding liabilities after the deadline will be vulnerable to enforcement actions, including penalties and prosecution. Amnesty applications can be filed online at GetRightCT.com.

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