Press Room: Tax Release

June 12, 2013

2013 Connecticut Tax Amnesty Program

In January of 2013, a bill was introduced as part of the Governor’s annual budget to offer a tax amnesty program available to any persons owing tax for any period ending on or before November 30, 2013. The amnesty would cover all taxes imposed by the state and collected by the Department of Revenue Services. While the amnesty program is not law yet, there is support for the bill and it is expected to pass either as part of the annual budget or as stand-alone legislation.

Below are the highlights of the proposed Connecticut amnesty program:

  • The amnesty period would be from September 16, 2013 to November 15, 2013 (all inclusive).
  • The amnesty would cover all taxes imposed by the state and collected by the Department of Revenue Services, with the exception of the motor carrier road tax imposed on licensees.
  • The amnesty would be available to any persons owing tax for any period ending on or before November 30, 2013.
  • In exchange for participation, the taxpayer would receive abatement of all civil penalties and criminal prosecution. In addition, taxpayers will receive a 75% reduction of interest shown due and payable as of the date of filing the amnesty application, provided that such interest and tax are paid in full by November 15, 2013.

Who qualifies for the amnesty program?

The term persons would include all individuals, partnerships, companies or corporations other than those who:

  1. Are party to any criminal or civil litigation or investigation as of July 1, 2013 in any court of the US or CT;
  2. Are party to a closing agreement with the Department;
  3. Have made an offer of compromise that has been accepted by the Department; or
  4. Are party to a managed audit agreement. It should be noted that the proposed amnesty would be available to taxpayers under audit.

To qualify for amnesty, taxpayers must complete these steps during the period of September 16, 2013 through November 15, 2013:

  • Submit all applicable franchise tax reports and forms.
  • Pay the tax and interest due as computed by the Secretary of State.

WTAS professionals can assist Connecticut taxpayers in many ways during the amnesty period including, but not limited to, preparing the relevant amnesty applications, quantifying exposures, preparing tax returns and in some cases, attempting to settle issues directly with the Connecticut Department of Revenue.