October 8, 2013

If you have failed to file a tax return with the state of Connecticut or owe taxes to the State of Connecticut, now is the time to clean up the problem. The Connecticut Department of Revenue Services is offering to waive penalties and reduce the interest owed by 75% on most Connecticut state taxes. This includes income taxes, business taxes, gifts taxes, estate taxes, sales and use taxes and almost any other tax collected by the State of Connecticut. (Property taxes are collected by each town, not the State of Connecticut so are not part of the amnesty program.) The program is in effect until November 15, 2013 and applies to all taxes incurred for periods up to November 30, 2012. The DRS has made the amnesty application process quite easy. The application can be completed and submitted online through the Department of Revenue Services website followed by payment using a credit card or an automatic withdrawal from abank account.

The DRS is aware of thousands of taxpayers who have not yet paid taxes owed. Many such taxpayers have received a Connecticut tax amnesty offer letter but even those taxpayers who have not received such a letter are eligible for the program. Substantial savings can occur by paying the taxes due at this time, particularly for taxes that are long overdue. Penalties and the standard interest of 10% per annum can quickly become equal to or greater than the amount of tax due.

The amnesty program is not available to taxpayers under criminal investigation or those who have accepted offers-in-compromise with the DRS.

In order to encourage taxpayers to file and pay taxes during the amnesty program any tax liabilities that are not paid during this period will become subject to an interest rate of 25% per annum, rather than the standard 10%. Please contact our office immediately if you would like assistance in participating in the Connecticut tax amnesty program.