Connecticut Tax Amnesty
November 15, 2021
By Vincent Occhino
Effective November 1, 2021, Connecticut is offering a tax amnesty program which runs through January 31, 2022 for almost all taxes administered by the Connecticut Department of Revenue Services; this includes (but is not limited to) corporate business tax, sales/use tax, individual income tax, withholding tax, and pass-through entity tax. Note that Connecticut motor carrier road tax (IFTA) is not eligible.
Taxpayers whose applications are accepted will benefit from:
a) elimination of all penalties associated with liabilities satisfied under the program,
b) reduction of interest by 75%, and
c) avoidance of criminal prosecution.
There is no limit on the lookback period and all tax periods ending on or before December 31, 2020 are eligible.
Taxpayers are eligible for the program if they a) were required to file a tax return but did not, b) previously filed a return but underreported their liability, or c) have an unpaid tax liability with the Department that is accruing penalties and interest.
Additionally, taxpayers currently under audit for periods ending on or before December 31, 2020 are eligible, along with individuals/businesses with pending protests with the Appellate Division, and individuals/businesses pursuing civil litigation with the Department.
The program is NOT available to anyone currently under, or is party to, criminal investigation by the DRS, nor is it available to anyone who is party to a closing agreement, a managed audit agreement, or Offer of Compromise with the DRS.
The deadline to file for Connecticut’s tax amnesty program is January 31, 2022. Additional information can be found at www.getrightct.com; please reach out to your tax advisor if you have questions regarding this matter.