The Connecticut Department of Revenue Services (DRS) has a long running Voluntary Disclosure Program that enables taxpayers to clear their tax record with the state. However, Connecticut is offering a Fresh Start program through November 30, 2018, that may be more favorable than the previous program — if you have underreported or underpaid Connecticut tax obligations for any tax return due on or before December 31, 2016. This program is designed to get taxpayers back on track with an emphasis on future compliance.
 
The Fresh Start Program is available to both businesses and individuals with tax liabilities administered by the Connecticut DRS. Taxpayers or their representatives must complete an online application on the DRS website. 

Benefits of the Program

• No penalties will be assessed
• Interest rate reduced by 50%
• Limited, three-year look-back period for non-filers
• No criminal prosecution 

Who Isn’t Eligible

Ineligible taxpayers include those who:

• Already received a bill
• Are under audit
• Are party to a closing agreement with the DRS
• Has protested a determination of an audit
• Is party to litigation against the Commissioner 

Work with your tax advisor to learn if you qualify and how to apply. Learn more about the program on the DRS website.
 
Read about Connecticut’s newly passed Senate Bill 11, offering taxpayers a state and local tax deduction work-around.
 
Please contact a member of your service team, or contact Cynthia Pedersen at cynthia.pedersen@cohencpa.com or Karen Raghanti at kraghanti@cohencpa.com for further discussion.
  
Cohen & Company is not rendering legal, accounting or other professional advice. Information contained in this post is considered accurate as of the date of publishing. Any action taken based on information in this blog should be taken only after a detailed review of the specific facts, circumstances and current law.