Connecticut launches tax amnesty program

The Connecticut Department of Revenue Services (DRS) has launched the 2021 tax amnesty program. The program provides a 75% reduction in interest and waives penalties and the possibility of criminal prosecution to those who have not filed, have under reported or have existing liabilities related to taxes owed to the state for any tax period ending on or before December 31, 2020.

The department will not use amnesty applications as evidence in any criminal investigation or prosecution. The program is not open to those who are currently under criminal investigation or are a party to any criminal litigation, are a party to a closing agreement, are a party to a managed audit agreement, or has made an offer of compromise that has been accepted by the department.

The program began November 1, 2021, and will end January 31, 2022. Tax amnesty applications must be filed electronically and any amount due must be paid in full by January 31, 2022. Once the program ends, taxpayers will be liable for the full tax, penalty, and interest on any amount owed. All taxes administered by the Connecticut DRS, except for Connecticut motor carrier road tax (IFTA), are eligible for the program. Taxpayers seeking amnesty can access more information about the program, including a link to the application and the secure online payment portal, via the Tax Amnesty program website at GetRightCT.com.

Mazars’ insight

The tax amnesty program, unlike the department’s voluntary disclosure program, is available to taxpayers that have already been contacted by the department, have an existing liability, or are under audit. Although the voluntary disclosure program has a limited lookback provision, the amnesty program does not. Whether amnesty or voluntary disclosure is more beneficial requires analysis of a taxpayer’s specific circumstances.

Please contact your Mazars USA LLP professional for additional information.

Authors 

Harold Hecht, Managing Director
Kevin Melson, Manager 

The information provided here is for general guidance only, and does not constitute the provision of tax advice, accounting services, investment advice, legal advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal or other competent advisers.