Sales, Use and International Tax Activity Update - April 2009

A Tale of Two Tax Amnesties

Connecticut - May 1 to June 25, 2009

Amnesty will be offered to any taxpayer owing Connecticut tax (H. B. No. 7601, 11/25/2008) for any taxable period ending on or before November 30, 2008 either because the taxpayer:

1. Failed to file a return for the taxable period, or
2. Previously filed a return for the taxable period but underreported the amount of Connecticut tax.

The program provides an opportunity for eligible taxpayers to pay their back taxes to the state while avoiding penalties and criminal prosecution. It also offers a reduction in interest.

A taxpayer may be ineligible for amnesty for either of the following reasons:

1. The taxpayer is currently under audit by the Connecticut Department of Revenue Services; or
2. The taxpayer is a party to any criminal investigation or to any civil or criminal litigation involving the Connecticut Department of Revenue Services.

If a taxpayer is not eligible for tax amnesty for a particular Connecticut tax or for a particular taxable period, the taxpayer may still be eligible to apply for tax amnesty for another Connecticut tax or for another taxable period.

The Connecticut Tax Amnesty Program, administered by the Department of Revenue Services and applications for Connecticut Tax Amnesty will not be accepted prior to May 1, 2009.

For more information visit the Connecticut Department of Revenue Services Website.

New Jersey - May 4, 2009 to June 15, 2009

For taxpayers that voluntarily come forward and pay the tax and one-half of the balance of interest due as of May 1, 2009, the Division of Taxation will waive civil and criminal penalties, as well as referral cost fees.

Amnesty applies to tax liabilities on tax returns due on or after January 1, 2002 and before February 1, 2009. Taxpayers who make payments under the amnesty program are deemed to be making an express and absolute relinquishment of all administrative and judicial rights of appeal that have not run or otherwise expired as of the date the payment is made. Further, payments made pursuant to the amnesty program are not eligible for refund or credit, whether claimed by administrative protest or judicial appeal.

Amnesty will not be extended to taxpayers that, at the time of payment, are under criminal investigation or charged for any state tax matter.

State liabilities that are eligible under the amnesty program that are not satisfied above and beyond all other costs, interest, and penalties will have an additional five percent penalty imposed that will not subject to waiver.

The full Assembly Bill 3819 may be viewed on the New Jersey Legislature Website.

 

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