Connecticut’s Tax Amnesty Program Launches

A tax amnesty program has been launched by the Connecticut Department of Revenue Services (DRS) and runs through January 31, 2022. It provides a 75% reduction in interest and waives penalties and the possibility of criminal prosecution for employers that have not filed, have underreported, or have existing liabilities related to taxes (including withholding tax) owed for any period ending on or before December 31, 2020 [DRS, Press Release, 10-29-21].

Tax amnesty applications must be filed electronically, and payment must be made in full by January 31, 2022. Once the tax amnesty program ends, employers will be liable for the full tax, penalty, and interest due on any amount owed.

Employers are not eligible to participate in the program if they:

• Are currently under criminal investigation by the DRS
• Are a party to any criminal litigation pending as of November 1, 2021
• Are a party to a closing agreement with DRS
• Have made an Offer of Compromise that has been accepted by DRS
• Are a party to a managed audit agreement

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Lia Coniglio, Esq., is Managing Editor of PayState Update and Senior Manager of State Payroll Information Resources for the APA.