Discrepancy Programs FAQs

STATE OF CONNECTICUT
DEPARTMENT OF REVENUE SERVICES
DISCREPANCY PROGRAM FREQUENTLY ASKED QUESTIONS

Why did it take the State of Connecticut so long to contact me?

Tax years generally end on December 31; however, the State does not receive the Federal changes until ALL information on a taxpayer’s return is verified by the Internal Revenue Service which occurs much later after the initial filing.

Will I need to file an amended return?

You do not need to file an amended tax return to include the proposed changes shown on this notice. We will correct this tax year. However, you may want to file amended returns for any prior or subsequent tax years in which the same error occurred.

What steps do I take if I do not agree?

You need to tell us in writing why you do not agree with our assessment and attach documentation supporting your objections to the assessment.

What if I don’t respond by the due date?

The audit will be closed and a Notice of Assessment will be issued. Interest will continue to accrue on the outstanding tax balance. However, penalties are a one-time fee; therefore, no additional penalties will be assessed.

Why do I have to pay a penalty?

By law, penalties are assessed for underpayment of income and for failure to report additional income. A 10% penalty is assessed for underreporting income, a $50.00 or 10% penalty, whichever is greater, is assessed for failure to report income.

Why do I have to pay interest?

We are required by law to charge interest on all tax owed that is not paid in full by its due date (usually April 15). In addition, interest will continue to accrue on any outstanding balance until the tax is paid in full.

What if I have more questions?

If you have any additional questions, you can contact the Income Tax Audit Unit at 860-541-4542.