Guidance on the Connecticut pass-through entity tax is issued to help taxpayers determine their 2018 estimated tax requirements. Pass-through entities are required to make estimated payments for 2018.
Pass-Through Entity Tax
Legislation that imposes an income tax on pass-through entities was enacted earlier this year. Due to the timing of the legislation, the Department of Revenue Services recognizes that pass-throughs may inadvertently underpay their 2018 estimated payments.
What to Do if Entity Has Underpaid Estimated Tax for 2018
If a pass-through entity receives a notice from the department that the entity may have underpaid, it may provide a written explanation describing why it failed to comply. Supporting documentation should be included with the written explanation.
These documents must be submitted to the department by December 31, 2019, at the following address: Connecticut Department of Revenue Services, 450 Columbus Boulevard, 11th Floor Hartford, Connecticut 06103 Attn: Legal Division/PE Tax Estimate.
Moreover, a pass-through entity or partner should contact the department at 860-297-5776 if the enactment of the pass-through entity tax has created other issues relating to the calculation or payment of 2018 estimated payments.
Office of the Commissioner Guidance OCG-6, Connecticut Department of Revenue Services, June 19, 2018, ¶401-869