SALT Report 2596 – On June 18, 2013, Connecticut Governor Dannel Malloy signed the state’s 2014-2015 biennium budget bill into law. The bill outlines the funds that have been allocated for various state agencies and programs and makes several state tax and revenue changes.
Included in the bill is a provision that authorizes a tax amnesty program to be established by the Department of Revenue Services. The amnesty program will start on September 16, 2013 and will end on November 15, 2013 and will cover any taxable period that ends on or before November 30, 2012.
Additional amnesty conditions and provisions include:
- Payment of all taxes owed for the approved amnesty period must be made by November 15, 2013,
- Civil penalties and criminal prosecution will be waived for all taxpayer who successfully complete the amnesty program,
- Interest on any taxes paid within the amnesty period will be 25% of the normal rate of 1.0% per month,
- Failure to file an amnesty application or include all taxes owed for the approved amnesty period will result in a 25% penalty that cannot be waived. In addition, all other applicable interest and penalties will be imposed on any post-amnesty payments,
- No portion of an amnesty tax payment that has been erroneously paid to the Department will be refunded, and
- The Commissioner is in the process of creating an amnesty application and may require that the applications be filed electronically
Taxpayers will be excluded from the amnesty program if they:
- Are a party to any criminal investigation or litigation pending on July 1, 2013,
- Are a party to a closing agreement with the Commissioner of Revenue Services,
- Have made an offer of compromise that has been accepted by the Commissioner, or
- Are a party to a managed audit agreement
Failure to comply with all amnesty provisions or failure pay all amounts due for the approved taxable period will invalidate the amnesty agreement
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