Late last week, the CT DRS published a press release on their website, formally announcing the state’s long-awaited tax amnesty program. The CT DRS has launched a new website specifically related to the amnesty program, GetRightCT.com.

Who can take advantage of the 2021 CT DRS Tax Amnesty Program:

Per the published guidance from the DRS, the amnesty program is in line with expectations based on the underlying legislation mandating the amnesty program. Notably, both individual and business taxpayers may apply to the program between November 1, 2021 and January 31, 2022. The program is available for those that have unreported liabilities / unfiled returns as well as those with delinquent tax balances for all tax types save the Motor Carrier Road Tax (IFTA). It also includes taxpayers currently under audit by the DRS and those with an ongoing protest pending before the DRS’s Appellate Division.

What are the benefits of participating in the 2021 CT DRS Tax Amnesty Program:

The program affords eligible applicants with a complete waiver of penalties, a 75% reduction in interest, and a protection from criminal prosecution. The program is applicable to any tax period ending on or before December 31, 2020 (meaning it includes your 2020 taxes), with no limit on how far back an applicant may go in reporting back taxes. In exchange for the benefits afforded by the program, the DRS requires that the balance due, after accounting for the program’s reductions, be paid in full along with the application to the program.

How do you apply for the 2021 CT DRS Amnesty Program:

Applications must be submitted online via the DRS’s myconneCT portal. Note that the DRS indicates that the application portal does not allow you to save your application and will time out after 20 minutes of activity, so make sure you have all the necessary information together and are prepared to submit payment prior to initiating the application process.

Notably, if you have unfiled returns that you wish to disclose through the amnesty program, the CT DRS is not requiring that these returns be filed. Rather, the application instructs you merely to prepare those returns in order to determine the amount of tax due with the return. The amount of tax due for each period should be entered into the amnesty application, but the returns do not need to be sent to the DRS. The DRS instructs you to retain the returns for your records, as liability amounts submitted via the amnesty program are presumably still open to examination by the DRS at a later date. Just the tax balance due for each period needs to be entered on the amnesty application. The CT DRS will calculate the amount of interest due based on the program’s interest reduction guidelines.

What are the payment requirements for the 2021 CT DRS Amnesty Program:

Payment must be initiated electronically on the same day as the amnesty application is submitted or the application will be denied and the DRS will not honor an amnesty agreement with respect to the information included on the application. The DRS provides the option of paying via direct payment from your checking or savings account, payment by credit card (which will include a convenience fee charged by a third-party payment processor), or by ACH Credit.

Amnesty ID is required if submitting amnesty only for delinquent taxes already assessed:

If you’re submitting an amnesty application that does not involve any unfiled returns or previously unreported liabilities, the CT DRS requires that you provide an “Amnesty ID” in order to begin the application process. The DRS is apparently planning to reach out to “those with known existing liabilities and suspected non-filers,” and such correspondence is likely to include the requisite Amnesty ID number needed to begin the application process. This number likely can also be obtained by calling the CT DRS and requesting that they provide you with a Amnesty ID, but I am still awaiting the opportunity to confirm as much.

*** As I assist clients through the process of submitting amnesty applications, I will endeavor to update this article with any additional information or requirements that come to light during the application process.