Businesses and individuals who are not in compliance with Connecticut tax laws may voluntarily register or bring their accounts into compliance.
A taxpayer may make arrangements to bring the taxpayer’s account into compliance if the taxpayer has:
– failed to pay Connecticut taxes;
– underreported income or gross receipts on which taxes should be paid; or
– not reported transactions subject to Connecticut taxes.
Benefits to Taxpayer
Taxpayers who voluntarily disclose nonpayment or underpayment of their taxes may generally be offered favorable terms to pay their back taxes. A taxpayer must pay the total taxes and interest due for a period determined by the Voluntary Disclosure Agreement. Agreements are entered into with the Department of Revenue Services.
The taxpayer benefits by:
– not having a penalty imposed;
– receiving a limited look-back period; and
– not having to undergo discovery under the state’s normal investigative or audit procedures.
Taxpayers must submit a written request to the department to participate in the program. To remain anonymous when sending the request, a taxpayer may engage a representative such as a tax preparer, accountant, or attorney.
Informational Publication 2018(18), Connecticut Department of Revenue Services, November 6, 2018, ¶401-883; modifying and superseding Informational Publication 2010(18), Connecticut Department of Revenue Services, September 28, 2010, ¶401-476