How to Apply for Connecticut Tax Amnesty and Save Money

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The State of Connecticut Department of Revenue Services (“DRS”) is running a tax amnesty program from September 16, 2013 through November 15, 2013. The amnesty program is for any tax period ending on or before November 30, 2012.

The primary benefits to taxpayers that are eligible and apply are a reduced interest rate and avoiding prosecution. The normal interest rate charged by the DRS on any outstanding obligation is 12%.  This rate is reduced to 3% during the 60 day amnesty program. The rate will reset to 12% when amnesty is over on November 16, 2013.

Most, but not all taxes are covered by this amnesty program.  The tax that is not covered by this program is the motor carrier tax.

Additionally there are the following situations where taxpayers are not eligible for the amnesty program:

* Any party subject to a criminal investigation as of July 1, 2013

* Any taxpayer that is part of a closing agreement with the DRS.

* Any taxpayer that has an offer in compromise accepted by the DRS.

* Any taxpayer involved in a ‘managed audit agreement.’

Payments must be made electronically through the CT DRS Taxpayer Services Center (“TSC”) system and must be paid in full with the application.

Like many other systems, this amnesty program is taking the carrot and stick approach.  The carrot of course is the reduced interest rate and avoiding prosecution mentioned about.  The stick however, is if you are eligible for amnesty and don’t apply there will an additional 25% penalty assessed.

Should you apply for the amnesty program?  If you have any unfiled returns on the face of if the answer would seem to be yes.  Where it could be more complicated is in the area of sales tax and out of state corporations.  The Connecticut sales tax is complicated and a thorough analysis should be done prior to applying. Out of state corporations also need to look carefully at the facts and circumstances of their situation to determine if an amnesty filing would be appropriate for them.

Will you take advantage of the State of Connecticut Tax Amnesty Program?


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Tom Scanlon, CPA, CFP® has over thirty-five years experience in public accounting with an extensive background in the areas of financial, tax and estate planning.

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