Connecticut State Department of Revenue Services

Q.

Why am I required to file and pay electronically?

A.

The Commissioner of Revenue Services has regulatory authority to require Connecticut tax returns to be filed electronically. The Commissioner also has statutory and regulatory authority to require the payments associated with such returns to be remitted electronically. See Conn. Gen Stat. §§12-686(b), 12-686(c); Conn. Agencies Regs. §§12-689-3(a), 12-690-1(b)(1).

In an effort to streamline the way DRS conducts business and becoming more environmentally "green" by eliminating paper whenever possible, the Commissioner is requiring everyone registered for any of the tax types listed above to file the returns and pay the associated taxes electronically.

Q.

When does this new requirement start?

A.

The requirement to file and pay electronically starts for tax periods beginning on or after January 1, 2014. For example,

• For those taxpayers who file their tax returns on a monthly basis, your first required electronically filed return for the period ending January 31, 2014 is due by February 28, 2014.
• For those taxpayers who file their tax returns on a quarterly basis, your first required electronically filed return for the period ending March 31, 2014 is due by April 30, 2014.
• For those taxpayers who file their tax returns on an annual basis, your first required electronically filed return for the period ending December 31, 2014 is due by January 31, 2015.
• For those taxpayers who must remit their income tax withholding on a monthly payment frequency, the due date for the January remittance is February 15, 2014 (extended to Monday 2/17/2014).

Calendar of Due Dates by Tax

Q.

Which forms and tax types does the requirement include?

A.

Income Tax Withholding

• Forms -CT-WH & CT-8109
• Reconciliations Forms -CT-941, CT-945 and CT-941X
• Annual Reconciliation Forms CT-W3 and accompanying W-2, CT-1096 and accompanying Forms 1099-R’s, 1099-MISC and W-2G

• Sales and Use Tax -Form -OS-114
• Admissions & Dues -Form O-372
• Room Occupancy Tax -Form OP-210

Corporation Income Tax

• Form CT-1120ES
• Form CT-1120
• Form CT-1120CU
• Form CT-1120EXT         

Prepaid Wireless Fee

• Form OP-153

Attorney Occupational Tax

• Form 472

Q.

Does the mandate include amended filings as well?

A.

Yes. The electronic mandate applies to the following tax types if an amended filing is necessary:

• Sales and Use Tax; (excluding annual filers)
• Business Use Tax; (excluding annual filers)
• Room Occupancy Tax;
• Admissions and Dues Tax;
• Income Tax Withholding;
• Prepaid Wireless Fee

Q.

Is the electronic filing and payment website secure?

A.

Yes. The TSC uses an up-to-date industry standard 128 bit encryption. The first time you log into the system, you will create a unique user ID and/or password. The use of a secure password to access your TSC account ensures that only you can authorize DRS to withdraw funds from your bank account on the date you choose, and that the funds are applied to the proper tax account.

Q.

What are the benefits of filing on the Internet?

A.

DRS recommends filing electronically over the internet whenever possible as it provides many benefits such as:

• The ability to view and/or print a return;
• Update bank information;
• Make or cancel payments;
• Create multi-user access;
• Add and/or remove users;
• Register for additional tax types; and
• Maintain account information

Q.

If I am already required to pay other taxes electronically, does this change the requirement?

A.

No. You should continue to file and pay electronically. This new requirement affects the tax types mentioned above.

Q.

What if I am already paying and filing these taxes electronically?

A.

If you are already filing and paying electronically any of the above taxes then continue doing so.

Q.

What if I use a payroll company or tax service?

A.

You are responsible for informing the payroll company or tax service that returns and payments must now be submitted electronically.

Q.

If I am required to electronically file and pay my tax return, will I still receive paper returns in the mail?

A.

No. DRS no longer mails pre-printed copies of returns to taxpayers required to electronically file those tax returns. Failure to receive a paper return does not relieve you of your obligation to file.

Q.

What types of electronic payments are accepted?

A.

We currently accept either ACH debit or ACH credit or credit card.

Direct payment by using the TSC (ACH Debit)
Direct payment allows you to both file and pay your taxes at the same time for a TSC eligible tax. You will be asked to provide the bank routing transit number, your bank account number and indicate checking or savings. You will also choose a settlement date for when you want the funds withdrawn. This can be the actual due date of the return.

If your bank account has a Debit Block on it, your financial institution will need our ‘Originator ID’ or ‘Debit Block ID’ in order for the CT Department of Revenue to originate the debit to your account. List of Debit block codes.

ACH Credit Method
With the ACH credit method you are making a payment SEPARATE from the TSC system. You, (not DRS) initiate the EFT payment through your bank by contacting them and establishing when you would like to send payment. You must ensure that your bank can perform the transaction by using the ACH standard CCD + TXP formats. To use the ACH Credit method, you must register with DRS in advance. To register for ACH Credit, use EFT-1, Authorization Agreement for Electronic Funds Transfer and mail or fax it to DRS following the directions on the form.

Credit card:

A convenience fee on the total tax payment will be charged to your account by the credit card service provider. You will be informed of the amount of the fee and you may elect to cancel the transaction. Visit our Credit Card webpage for more information.

Q.

If I authorize DRS to debit my account to pay my taxes, will DRS have access to my bank account for any other purpose?

A.

No. Authorizing an ACH debit does not give DRS unrestricted access to your bank account. Any withdrawal transactions with your bank must be initiated by you. The use of a secure password to access yourTSCaccount ensures that only you can authorize DRS to process the transfer of funds from your bank account and that the funds are applied to the proper tax account.

Q.

Can I pay by check if I am required to pay Electronic Funds Transfer (EFT)?

A.

No. Payment by check does not relieve you of the requirement to pay by EFT and subjects you to a noncompliance penalty even if the DRS bank account is credited for the payment made by check on or before the due date.

Q.

What if I do not have access to a computer?

A.

The TSC does support many different browsers and should work with your smart phone or tablet as well as your personal computer. The DRS walk-in units can assist with these filings and many public libraries offer computers and access to the internet that could be used to file your returns via the TSC website (www.ct.gov/TSC).

Q.

Can I file and pay all of the required returns using the telephone method?

A.

No. The TSC application has a file by telephone option that enables you to file and pay most common taxes electronically using a touch tone phone. The following forms can only be electronically filed on the internet:

• Form CT-941X, Amended Connecticut Reconciliation of Withholding
• Form CT -W3, Connecticut Annual Reconciliation of Withholding
• Form CT-1096, Connecticut Annual Summary and Transmittal of Informational return
• Form O-372, Admissions and Dues Tax Return
• Form OS-114BUT, Business Use Tax Return
• Form CT-1120, Corporation Business Tax
However, payments for the Withholding, Admission and Dues, Business Use and Corporation taxes can be made using the payment-only option on the phone.

Q.

Are there any Opt-Out provisions?

A.

There are no opt-out provisions. However, If you can show that filing and paying electronically creates an undue hardship, the Commissioner of Revenue Services may grant a one-year waiver of the electronic filing requirement. Request a waiver by submitting a properly completed Form DRS-EWVR, Electronic Filing and Payment Waiver Request, no fewer than 30 days before the due date of your electronic filing and payment. See Policy Statement 2011(3), Requests for Waiver of Electronic Filing and Electronic Payment Requirements

Q.

What if I don’t have a US bank account?

A.

To initiate a Direct Payment through theTSC(ACH Debit) you will need to use a 9 digit numeric routing number that is acceptable through the Automated Clearing House (ACH). If this is unable to be obtained through your financial institution, you may want to contact them and see if they are able to initiate an ACH Credit to DRS.

Q.

What if I refuse to file and pay electronically and still send in a paper return and a check?

A.

A 10% “Failure to Comply” penalty is imposed even if a paper check payment is received timely.

Q.

Is there a penalty for a late EFT payment?

A.

Yes. The penalty scale for a late EFT is:

• 2% of tax due for an EFT payment that is not more than five days late;
• 5% of tax due for an EFT payment that is more than five days but not more than 15 days late; and
• 10% of tax due for an EFT payment that is more than 15 days late.

Interest is charged at the rate of 1% per month or fraction of a month from the due date of the tax until the date of the payment.

Q.

When is the payment due if the due date falls on a weekend or legal holiday?

A.

If the due date falls on a Saturday, Sunday, or legal holiday, the return will be considered timely if filed by the next business day.

Q.

How do I report changes to my bank information?

A.

Changes to your banking information can be made from the TSC Main Menu or on the direct payment page when you are making a payment.

Q.

How does a taxpayer report changes to an electronically filed return?

A.

DRS accepts amended and supplemental returns filed electronically through theTSC. To file a corrected return simply repeat the filing process and the TSC will ask if you are attempting to correct a prior filing.

Q.

Does the TSC Password ever expire or need to be changed?

A.

The passwords do not expire but you can change them as often as you wish.

Q.

Can I schedule a future payment?

A.

Yes. The TSC defaults the payment date to date of filing. You have the option to change the payment date to any date up to the due date.

Q.

How do I know that I successfully filed and paid electronically?

A.

Both the filing on-line TSC and the TSC by Telefile provide you with a confirmation number. Once you receive this number, your tax return is filed.

Q.

Can I get a print-out of my filing?

A.

Yes. A Print page will be provided containing all of your information as submitted. Keep the printable copy for your records.

Q.

How do I get started?

A.

Taxpayers will need to access the TSC through the internet or by phone. Additional details can be found in the following documents:

• TPG-129-Taxpayer Service Center Electronic Filing and Payment Instructions for filing ONLINE
• TPG-120-Connecticut Business Telefile System for filing using the automated telephone service

To begin your filing process, visit the TSC.