News & Publications
Connecticut Tax Amnesty Program Offers a ‘Fresh Start’
As of October 31, 2017, Connecticut is now offering an incentive program for both individual and business taxpayers to voluntarily come forward and pay their unreported tax liabilities. Individuals and businesses may be eligible if returns were not filed, or if the returns failed to report the full amount of tax on a previously filed return for any tax return due on or before December 31, 2016.
When:
The Connecticut Fresh Start program began October 31, 2017, and taxpayers have until November 30, 2018, to apply through the online application. Taxpayers should apply as soon as possible because the sooner taxpayers apply, the more interest can be saved.
What:
All taxes administered by the Department of Revenue Services (DRS), except for taxes imposed under chapter 222 (IFTA), qualify for the Connecticut Fresh Start program. Eligible tax types include: income tax, business entity tax, sales and use tax, withholding tax, corporation business tax, and gift tax. Examples of taxes and fees not administered by the Department of Revenue Services and not qualified for the Connecticut Fresh Start program include local property taxes, payroll taxes owed to the Connecticut Department of Labor, taxes owed to the federal government, and fees imposed by the Secretary of State.
To be eligible to participate in the program, taxpayers must have failed to file a return or failed to report the full amount of tax on a previously filed return for any tax return due on or before December 31, 2016.
The Connecticut Fresh Start program may not be used to resolve outstanding tax liabilities for any tax type and period for which the taxpayer: has received a bill; is under audit; is party to a closing agreement with DRS; has made an offer of compromise that has been accepted by DRS; has protested a determination of an audit; or is a party to litigation against the Commissioner.
Participating in the Connecticut Fresh Start program provides the following incentives to taxpayers:
- Penalties will not be imposed on the tax reported and paid through the Fresh Start program
- Department of Revenue Service will waive 50% of the interest on the tax you report and pay through the Fresh Start program
- Certain non-filers may qualify for a limited look-back period
- Department of Revenue Service will not initiate a criminal investigation or seek prosecution in relation to any application submitted and tax paid in good faith under the Fresh Start program
Taxpayers who are selected to participate in the Connecticut Fresh Start program agree to timely file all required returns and pay all associated tax to the Department of Revenue Services for three years following the date of the Fresh Start application.
To participate in the program, taxpayers must complete a brief online application through the Connecticut Department of Revenue Service before the program closes on November 30, 2018.
Tips for the Taxpayer
Complete a review of your nexus and business activity in Connecticut and assess the applicable tax. If your business is not-compliant with any of the mentioned tax types, take this opportunity to reduce liability and become compliant through the Connecticut Fresh Start program, offered by the Department of Revenue Services.
How Can We Help?
Allyn’s tax team is staffed with seasoned tax professionals who consistently conduct nexus reviews and coordinate with state taxing authorities on behalf of our clients. We will do a full review of your business activities to determine whether or not you qualify for the program and if it is the right choice for you. Allyn can ensure that your application is completed timely, accurately and shield you from identification until a Voluntary Disclosure Agreement is signed.
Allyn will also review your activities in states that are not participating in the program so as to assess your audit risk and develop an action plan to reduce your liability through direct negotiation with the applicable jurisdictions.
After the program is completed, your company will not only need to register for the relevant tax accounts, but also need to establish procedures for continued compliance in sales/use, income, property, and other miscellaneous tax responsibilities. Allyn has been managing these tasks on behalf of clients in various industries in every US jurisdiction for over 25 years. Our Tax Analysts can set up your tax processes for you, reducing the burden on your company and giving you the opportunity to focus on your core business.
Contact us and we can provide a customized cost-effective solution to meet your company’s needs. For further information on Allyn Tax services, please contact tax@allynintl.com.
For More Information
If you are interested in learning more about this topic or other tax topics, please visit our Tax Publications under News & Publications at www.allynintl.com.
Contributor: Samantha Foster
About Allyn International
Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China and Prague, Czech Republic. For more information, visit www.allynintl.com.