The Connecticut Department of Revenue Services plans to begin a tax amnesty program from Sept. 16, until Nov. 15, 2013 for any taxable period ending on or before Nov. 30, 2012.
The tax amnesty was approved by the Connecticut legislature in June and was signed into law by the governor. The program applies to all taxes administered by the Connecticut Department of Revenue Services, with the exception of the motor carrier road tax. The program is available to delinquent, deficient and non-filer taxpayers, the tax services firm Ryan pointed out in an announcement Wednesday. If an amnesty application is filed along with the payment of tax and interest during the amnesty period, the Department will not seek criminal prosecution or collect any civil penalties.
Under the tax amnesty program, the Connecticut Department of Revenue Services will calculate interest at 1 percent per month on tax that is past due. However, taxpayers that make payment of all outstanding taxes and interest during the amnesty period will have the interest reduced to one-quarter of what is due. Taxpayers that have not filed a return for the period for which amnesty is sought are subject to a 25 percent penalty, in addition to tax and interest.
Amnesty applications that are granted will serve as an express and absolute waiver of any judicial or administrative rights of appeal for the taxpayer. Further, no payment made by a taxpayer under the Program is eligible to be refunded or credited to the taxpayer.
Amnesty is not available for the following:
• Motor carrier road tax;
• Any taxpayer that is a party to a criminal investigation or criminal litigation pending on July 1, 2013;
• Any taxpayer that is a party to a closing agreement with the Department;
• Any taxpayer that has had an offer of compromise accepted by the Department; or
• Any taxpayer that is a party to a managed audit agreement.