Connecticut – House Passes Amnesty Provisions

SALT Report 2564 – The Connecticut House of Representatives passed a Bill that authorizes the Department of Revenue Services to establish a tax amnesty program. The amnesty program would run from September 16, 2013 through November 15, 2013 and cover taxable periods ending on or before November 30, 2012.

Amnesty Provisions

The amnesty program would apply to individuals, businesses, or other taxpayers that owe Connecticut state taxes, other than motor carrier road taxes, to DRS.

Amnesty Conditions

The Commissioner is required to create an amnesty application that would require the applicant to specify which taxes they owe and the taxable periods for which they seek amnesty.

The commissioner will only grant amnesty to taxpayers who pay the taxes and interest that the Commissioner determines is owed at the time an application is filed.

If a taxpayer files an application during the amnesty period and pays all of the taxes owed for the covered tax periods, plus interest, the Commissioner will waive any civil penalties and will not seek criminal prosecution.

If the Commissioner grants amnesty, the taxpayer must waive its right to any administrative or judicial appeal as of the payment date.

Taxpayers who receive amnesty may not collect any refund or credit for tax payments made under an amnesty agreement.

Failure to pay the full amount due will invalidate the amnesty.

Interest Reduction

If a taxpayer pays the taxes due by November 15, 2013, the Commissioner will reduce the interest rate on those taxes to 1/4 of the interest that the Department’s records show to be due and payable as of the application’s filing.

Amnesty Exclusions

Amnesty will not be offered to those who:

  • Are parties to any criminal investigation or criminal litigation pending on July 1, 2013 in any federal or Connecticut court,
  • Are parties to a closing agreement with the Commissioner,
  • Have made an offer in compromise that has been accepted by the Commissioner, or
  • Are parties to a managed audit agreement

Failure to File for Amnesty

Penalties will be imposed on any taxpayer who:

  • Owes any tax for the applicable tax periods for which a tax return was required, but not filed, and
  • Fails to file a timely amnesty application

The penalty imposed in this section is equal to 25% of the tax owed and may not be waived. This penalty is in addition to any other applicable interest and penalties under existing law.

House Bill 6704 was passed by the House on June 1, 2013 and the Senate on June 3, 2013.

For Further Information

Connecticut House of Representatives – House Bill 6704