Connecticut – New EFT Rules Make it Easier for Taxpayers

SALT Report 1311 – The Connecticut Department of Revenue Services announced new electronic payment rules that will take effect January 1, 2012.  Due to recently passed legislation all electronic filing payments will now be considered on-time as long as the payments are made before midnight on the day they are due.

Previously, a payment was considered on-time only if the money was credited to the DRS bank account on the due date.  This forced many taxpayers to make payments days in advance to ensure that DRS received the money on time.  The new rules will provide taxpayers with more flexibility in scheduling their payments and eliminates the penalty for late processing.

For all tax periods beginning on or after January 1, 2012:

  • All tax payments that are required to be made by EFT will be treated as a timely payment as long as the taxpayer initiates the EFT on or before the due date for the payment.
  • Taxpayers may now initiate their ACH Debit payment up until midnight on the due date of the tax. This includes withholding taxes.
  • Taxpayers using the ACH Credit method must initiate their payment on or before the due date. However, the DRS bank account must receive your payment on or before the next business day following the due date of your return.