November 2, 2021

DRS: State Launches Tax Amnesty Program

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This past legislative session, the budget (PA 21-2) created a tax amnesty program for taxpayers who owe back state taxes. This program is available from November 1, 2021 to January 31, 2022, and covers any tax period ending on or before December 31, 2020. There is no limit on how far back one can go and both individuals and businesses are eligible for this program.

The program provides a 75% reduction in interest and waives penalties and the possibility of criminal prosecution of those who have not filed, under-reported, or have existing liabilities related to taxes owed.

The following situations are eligible for the program:

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.

Additionally, here are the types of taxes 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

Individuals can go to the following website to find our more information about the program and to apply: https://www.getrightct.com/

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