Pass-Through Entity Tax
- Who Must File
- What return to file
- When are returns due
- How to file and pay online (TSC)
- Related publications
The Pass-Through Entity (PE) Tax is imposed on the following entities that do business in Connecticut or have income derived from or connected with Connecticut sources:
- Partnerships, including limited liability companies that are treated as partnerships for federal income tax purposes, but excluding publicly-traded partnerships; and
- S corporations, including limited liability companies that are treated as S corporations for federal income tax purposes.
Sole proprietorship's and single-member limited liability companies that are disregarded for federal income tax purposes are not subject to the PE Tax.
If you are subject to the PE Tax, you must file Form CT-1065/CT-1120SI, Connecticut Pass-Through Entity Tax Return.
Your Connecticut return is due on the fifteenth day of the third month following the end of your taxable year. For calendar year filers, your return is due on March 15th.
You can request a six month extension of time to file by filing Form CT-1065/CT-1120SI EXT, Application for Extension of Time to File Connecticut Pass-Through Entity Tax Return, prior to the due date of your return. This request only extends the time to file; it does not extend the time to pay. You must still pay your tax liability by the original due date.
I made a PE Tax Extension payment on the TSC before the due date. Do I still have to file the form or is the payment sufficient to get the extension approved?
Yes, you must also file Form CT-1065/CT-1120SI EXT, Application for Extension of Time to File Connecticut Pass-Through Entity Tax Return.
You are required to file your PE Tax Return and make payments electronically. Payments and Form CT-1065/CT-1120SI may be filed through the Taxpayer Service Center (TSC). You may also file electronically by using third party software.
If you cannot file and/or pay electronically, you should request a waiver by filing Form DRS-EWVR.
If you required annual payment is $1,000 or greater, you are required to make estimated payments.
A PE’s required annual payment is equal the lesser of:
- 90% of the PE Tax shown on the PE’s current year Connecticut PE Tax return; or
- 100% of the PE Tax shown on the PE’s prior year Connecticut PE Tax return if the PE filed a prior year return that covered a 12-month period.
Estimated payments for calendar year filers are due on April 15, June 15, September 15, and January 15. The due dates for fiscal year filers are adjusted based upon their fiscal year.