June 25, 2013

Connecticut Enacts Tax Amnesty Program

Contributor Paul Graney, Partner, Tax & Business
Diane Giordano, Partner, Tax & Business
Ronald Finkelstein, Partner, Tax & Business
Ali Hirji, Supervisor, Tax & Business

Connecticut Enacts Tax Amnesty Program Tax & Business

Legislation has been approved by the CT General Assembly that would establish a limited amnesty for taxes due to the State of Connecticut. The program applies to all taxes due to the State of Connecticut with the exception of Motor Carrier Road Tax. The tax amnesty program shall be conducted during the period from September 16, 2013 through November 15, 2013, inclusive. It will waive all civil penalties and will not seek criminal prosecution. In addition the amnesty also provides for a 75% reduction in the interest rate from 12% to 3%.

All taxes and interest must be paid during the amnesty program or the benefits of the program will be deemed invalid. In addition, the filing of an amnesty application constitutes a waiver of all appeal rights or the ability to file for a refund. However, this program will apply to matters currently pending before the Department of Revenue Services. So taxpayers currently under audit or that have been notified of an audit can avail themselves of this program.

Taxpayers ineligible for this program are the following:

  • person who is a party to any criminal investigation or to any criminal litigation that is pending on July 1, 2013, in any court of the United States or this state
  • is a party to a closing agreement with the commissioner
  • has made an offer of compromise that has been accepted by the commissioner
  • is a party to a managed audit agreement.

In addition, if a taxpayer was required to file tax returns for any period prior to November 30, 2013 and has not filed those returns nor an amnesty application, the statute provides for a non-waivable penalty of 25% of the tax owed for the period.

Amnesty programs provide an excellent opportunity to “come forward”, get current with your tax liabilities and save significant interest and penalties.

Should you require more information on the Connecticut Amnesty program please contact your Marcum State and Local Tax professional.

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