Other Helpful Information
- Waiver of Penalty
- Rounding Off to Whole Dollars
- Private Delivery Services
- Refund Information
- Person Responsible for Filing Return and Paying Tax
- Financial Disability
- Comparison Between Federal Gift Tax and Connecticut Gift Tax
- Power of Attorney
- Fraud Reporting Form or DRS Fraud hotline: 855-842-1441
- Change of Address
- Copies of My Returns
- Status Letter
If you believe that a penalty should be waived because the failure to pay the tax on time was due to reasonable cause and was not intentional or due to neglect, you have the right to request a penalty waiver. Interest cannot be waived. You MUST pay all tax and interest due before a penalty waiver request will be considered.
For detailed information about the penalty waiver, see Penalty Waiver Request, Offer of Compromise or Protest.
You must round off cents to the nearest whole dollar on your return and schedules. If you do not round, DRS will disregard the cents. Round down to the next lowest dollar all amounts that include 1 through 49 cents. Round up to the next highest dollar all amounts that include 50 through 99 cents. However, if you need to add two or more amounts to compute the amount to enter on a line, include cents and round off only the total.
Example: Add two amounts ($1.29+$3.21) to compute the total ($4.50) to enter on a line. $4.50 is rounded to $5.00 and entered on a line.
Your return will meet the timely filed and timely payment rules if the U.S. Postal Service cancellation date, or the date recorded or marked by a designated private delivery service (PDS) using a designated type of service, is on or before the due date. Not all services provided by the designated PDSs qualify. The following are the designated PDSs and designated types of service at the time of publication:
- DHL Express:
- DHL Express 9:00
- DHL Express 10:30
- DHL Express 12:00
- DHL Express Worldwide
- DHL Express Envelope
- DHL Import Express 10:30
- DHL Import Express 12:00
- DHL Import Express Worldwide
- Federal Express (FedEx):
- FedEx First Overnight
- FedEx Priority Overnight
- FedEx Standard Overnight
- FedEx 2 Day
- FedEx International First Next Flight Out
- FedEx International Priority
- FedEx International First
- FedEx International Economy
- United Parcel Service (UPS):
- UPS Next Day Air Early AM
- UPS Next Day Air
- UPS Next Day Air Saver
- UPS 2nd Day Air
- UPS 2nd Day Air A.M.
- UPS Worldwide Express Plus
- UPS Worldwide Express
This list is subject to change. See Policy Statement 2016(4), Designated Private Delivery Services and Designated Types of Service.
Receipt of a refund claimed does not constitute acceptance by DRS of Form CT‑706/709 as filed. DRS may examine your refund claim within three years from the later of the due date or filing date of your return. The examination could result in additional tax, penalty, and interest charges. A closing letter will not be issued to the estate or the probate court until the examination of the return is completed.
Keep a copy of the tax return, worksheets, and records of all items appearing on the return until the statute of limitations expires for that return. Usually, this is three years from the date the return was due or filed, whichever is later.
Person Responsible for Filing Return and Paying Tax
If Form CT‑706/709 must be filed, the donor is responsible for filing Form CT‑706/709 and paying the tax due.
If a donor becomes legally incompetent or dies before filing the return, the donor’s guardian, conservator, executor, or administrator is responsible for filing the return. If there is no duly qualified executor or administrator, the donor’s heirs, legatees, devisees, or distributees are required to pay the tax to the extent of the value of their inheritances, bequests, devises, or distributive shares of the donor’s estate.
If the gift tax is not paid when due, each donee is personally liable for the tax to the extent of the value of the gift received.
If you, as the donor, are financially disabled as defined in IRC § 6511(h)(2), the statute of limitations for having an overpayment of Connecticut gift tax refunded to you is extended for as long as you are financially disabled. You are financially disabled if you are unable to manage your own affairs by reason of a medically determinable physical or mental impairment that has lasted or can be expected to last for a continuous period of not less than 12 months. You are not financially disabled during any period your spouse or any other person is authorized to act on your behalf in financial matters.
Comparison Between Federal Gift Tax and Connecticut Gift Tax
A gift is a transfer of property or interest in property without adequate consideration. For Connecticut gift tax purposes, a transfer is only treated as a gift if it is treated as a gift for federal gift tax purposes. Some transfers treated as gifts for federal gift tax purposes are not treated as gifts for Connecticut gift tax purposes. For example, real property located outside Connecticut is not subject to the Connecticut gift tax. Gifts to which the Connecticut gift tax applies are gifts of real property and tangible personal property located in Connecticut whether the donor is a resident of Connecticut or a nonresident of Connecticut and gifts of intangible personal property but only where the donor is a resident of Connecticut.
Exclusions and Deductions
For federal gift tax purposes, the first $16,000 of gifts to a donee during the calendar year of a present interest in property is excluded from the total amount of gifts. There is no annual exclusion for gifts of future interests. A present interest in property is an unrestricted right to the immediate use, possession, or enjoyment of property or the income from the property. For Connecticut gift tax purposes, the same first $16,000 of gifts to a donee during the calendar year of a present interest in property that was excluded for federal gift tax purposes is excluded from the total amount of gifts, but only if that same first $16,000 of gifts to the donee is gifts to which the Connecticut gift tax applies.
For federal gift tax purposes, the first $164,000 of gifts made to a spouse who is not a U.S. citizen during the calendar year of a present interest in property is excluded from the total amount of gifts. For Connecticut gift tax purposes, the same first $164,000 of gifts to a spouse who is not a U.S. citizen during the calendar year of a present interest in property that was excluded for federal gift tax purposes is excluded from the total amount of gifts, but only if that same first $164,000 of gifts to the spouse is gifts to which the Connecticut gift tax applies.
For federal gift tax purposes, deductions are allowed for gifts to charitable organizations or to a spouse who is a U.S. citizen. For Connecticut gift tax purposes, deductions are allowed for gifts to charitable organizations or to a spouse who is a U.S. citizen.
In general, the valuation rules used for federal gift tax purposes are also used for Connecticut gift tax purposes. These rules include the special valuation rules of IRC §§ 2701 through 2704, where they apply. Generally, the special valuation rules apply if a donor transfers certain property to a member of his or her family and, immediately after the transfer, retains or is deemed to have retained an interest in the property. For example, certain gifts of real property in which the donor retains a life estate and transfers a remainder interest to a member of his or her family are subject to the special valuation rules. Where the special valuation rules apply, the value of the retained interest is disregarded in determining the value of the gift made to the family member. See IRC § 2702. If a gift of farmland is made, the donor may elect to use a valuation method other than the federal valuation rules. See Gifts of Farmland.
Example: During calendar year 2022, Mary conveys title to her house to her three children and either retains a life use for herself on the deed or does not retain a life use for herself on the deed but continues to occupy the residence. Mary does not receive any money or other type of consideration for the house from her children. Mary has made a gift of a future interest to her children. Because this is a gift of a future interest to her lineal descendants, it is subject to the special valuation rules (IRC §§ 2702 et seq.). The value of Mary’s gift determined under the special valuation rules is the property’s fair market value (less encumbrances). Because this is a gift of a future interest, annual exclusions do not apply.
For federal gift tax purposes, if both spouses consent to gift split, all gifts made to third parties during the calendar year, whether made by one spouse alone or made partly by each spouse, are considered made one-half by each spouse (only if at the time of the gift each spouse is a citizen or resident of the U.S.). For federal purposes, the first $32,000 of gifts of a present interest in property to a donee by consenting spouses during the calendar year are excluded from the total amount of gifts. To gift split:
- Spouses must be married to each other at the time the gifts were made for gift splitting to apply. If they are subsequently divorced during the year, they may still gift split for gifts made while they were married so long as neither marries anyone else during the year;
- Spouses must both be citizens or residents of the United States on the date of the gift; and
- One spouse may not create a general power of appointment in the other spouse over the property transferred.
The executor or administrator for a deceased spouse’s estate or the guardian of a legally incompetent spouse may sign the consent. The consent of an executor or administrator is not effective for gifts made by the surviving spouse during that portion of the calendar year his or her spouse was deceased.
A husband and wife who have both consented to gift split for federal gift tax purposes are deemed to have both consented to gift split for Connecticut gift tax purposes and are required to gift split for Connecticut gift tax purposes. The rules that apply to determine whether and which gifts may be gift split for federal gift tax purposes also apply for Connecticut gift tax purposes. If a husband and wife have not both consented to gift split for federal gift tax purposes, they may not gift split for Connecticut gift tax purposes.
The Connecticut gift tax liability of the spouses deemed to have consented to gift split is joint and several. Joint and several means one or both parties can be held responsible to pay the full amount of the tax due.
No Joint Gift Tax Return
A married couple may not file a joint gift tax return for either federal gift tax purposes or Connecticut gift tax purposes.
To authorize one or more individuals to represent you or your business before the Department of Revenue Services (DRS), use LGL-001, Power of Attorney. This authorization allows your representative(s) to receive and inspect confidential tax information and to act on your behalf in matters before DRS.
Submit LGL-001 electronically by sending it to DRS through a secure web message in myconneCT. Log in to myconneCT, open the More … menu, locate the Correspondence group and click the Send a Message hyperlink.
Taxpayers can change their address through myconneCT.
- Log in to myconneCT.
- Open the More... menu.
- Locate the Taxpayer Updates group and click the Manage Names & Addresses hyperlink.
- Continue to follow the prompts on the screen.