Windham Region Chamber of Commerce

TAX

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DO YOU OWE ANY CT TAXES FROM 2020 OR BEFORE? THERE IS HELP

The pandemic has been tough on us all, but now’s the time to get right. If you owe back taxes for periods up to and including 2020, the State of CT Department of Revenue Services is offering a limited window of opportunity to pay up at reduced interest with no penalties and no criminal prosecution.

The Connecticut tax amnesty program begins Monday, November 1, 2021, and ends Monday, January 31, 2022.

Benefits of enrolling in this program include:

  • Reduction of the interest by 75%.
  • Elimination of all penalties associated with liabilities satisfied under the Connecticut tax amnesty program.
  • Avoidance of criminal prosecution.

Any tax period ending on or before December 31, 2020 is eligible for this assistance. There is no limit on how far back an applicant may go in reporting back taxes.

The following are eligible:

  • Individuals or businesses that owe taxes and are required by law to file a tax return with DRS – within an eligible tax period – but have not filed. Individuals or businesses that previously filed a tax return with DRS – for an eligible tax period – but did not report all the tax that was due.
  • Individuals or businesses that currently have an unpaid tax liability with DRS that includes tax and penalty and/or interest.
  • Individuals or businesses currently under audit by DRS for periods ending on or before December 31, 2020.
  • Any individual or business with a protest pending before DRS’s Appellate Division.
  • Any individual taxpayer or business currently pursuing civil litigation with DRS.

The following taxpayers are not eligible to participate:

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

As a general rule, most taxes administered by DRS are eligible for amnesty. Examples of taxes administered by DRS that are eligible:

  • Business use tax
  • Cigarette tax
  • Corporation business tax
  • Gift tax
  • Income tax (individuals, estates, and trusts)
  • Individual use tax
  • Motor vehicle fuels tax
  • Sales and use tax
  • Withholding tax
  • Pass-through entity tax

Connecticut motor carrier road tax (IFTA) is not eligible.

For more information or to enroll in the program GO HERE.

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REMINDER: FIRST QUARTERLY PFMLA PAYMENT DUE

Beginning on January 1, 2022, paid leave benefits under the Connecticut Paid Leave program (CPL) will be available for certain qualifying events under the federal Family and Medical Leave Act (FMLA), the Connecticut Family and Medical Leave Act (CT FMLA), and the Connecticut Family Violence Leave Act.

Beginning January 1, 2021, employers began withholding employee contributions (0.5% payroll tax) from each employee’s paycheck for ultimate remittance to the Connecticut Paid Leave Authority trust fund, which oversees the payment of CPL benefits.

The first quarterly payment to the CPL Authority is due at the end of this month (March 2021).  After that you will need to continue making quarterly payments due at the end of the last month of each quarter.

At this time we do not have any specific guidelines or procedures for employees and employers regarding applying for and receiving the actual benefits (starting January 1, 2022).  The CT Department of Labor will publish these guidelines at the end of this year for you to distribute to your employees.  All private sector employees will have some form of leave benefit.  Some federal, some state, some paid, some unpaid, and job protection.  We will keep you informed both with news and webinars on the specifics of each.