Connecticut Department of Revenue Announces Tax Amnesty Program Effective November 1, 2021

Connecticut Department of Revenue Services (DRS) Commissioner Mark Boughton announced the 2021 Tax Amnesty Program, which offers individuals and businesses the opportunity to pay back taxes at a reduced interest rate and no penalties. The program, which took effect on November 1, 2021, and ends on January 31, 2022, applies to all Connecticut taxes except for the motor carrier road tax. It also applies to all taxable periods ending on or before December 31, 2020.

Under Tax Amnesty Program, all penalties will be waived, and interest payable will be reduced by 75%. Additionally, non-filers will not be subject to criminal prosecution.

The only individuals or businesses not eligible are:

1) those currently under criminal investigation by the DRS,

2) those party to a criminal litigation pending as of November 1, 2021,

3) those party to a closing agreement with DRS,

4) those who have made an offer in compromise which has been accepted by DRS, and

5) those party to a managed audit agreement.

 
It does, however, apply to individuals or businesses that:

1) are currently under audit by DRS,

2) have a protest pending before the DRS Appellate Division, or

3) are currently pursuing litigation with DRS.

Amnesty applications must be filed electronically, and full payment must be made when the application is submitted. Installment payments or extensions will not be granted. If payment is not made accordingly, amnesty will be denied, and the taxpayer will be billed for the entire amount of tax shown on the application plus full interest and applicable penalties. The taxpayer also waives any further judicial or administrative rights.

DRS will notify taxpayers that their application for amnesty has been denied by mail.

If you have any questions regarding Connecticut’s 2021 Tax Amnesty Program, please contact FLB Law’s Tax attorney Leslie Grodd.