AN 94(2)

Rulings And Administrative Pronouncements Obsolete By The Repeal Of The Capital Gains Tax, Dividend And Interest Income Tax And Estate Income Tax

PURPOSE: The purpose of this Announcement is to identify rulings and administrative pronouncements that, while valid when issued, should no longer be relied upon. The Department will declare a ruling or pronouncement to be "obsolete" where, because of changes in the law on which a ruling or pronouncement was based or because a position that was taken in a ruling or pronouncement has been addressed in a subsequently promulgated regulation, the ruling or pronouncement is no longer considered authoritative and should not be relied upon for future taxable periods. By declaring a ruling or pronouncement to be obsolete, the Department intends to eliminate unnecessary research and to reduce the possibility of erroneous decisions by taxpayers and tax practitioners. The fact that a ruling or pronouncement is "obsolete" does not affect its past validity or its application to past taxable periods.

REPEAL OF CAPITAL GAINS TAX AND DIVIDEND AND INTEREST INCOME TAX: Prior to 1991, certain individuals, generally resident individuals, paid tax on their capital gains or on their dividend and interest income, or both. In 1991, the General Assembly imposed a broad-based income tax for taxable years commencing on or after January 1, 1991 on resident individuals, trusts and estates, nonresident individuals, trusts and estates, and part-year resident individuals and trusts. (See 1991 Conn. Pub. Acts 3, §§ 51 to 93, inclusive (June Spec. Sess.).) At the same time, the General Assembly lowered the rates of the capital gains tax and the dividend and interest income tax for the taxable year commencing during 1991. (See 1991 Conn. Pub. Acts 3, §§ 123 and 124 (June Spec. Sess.).) Accordingly, the following administrative pronouncements are no longer considered determinative with respect to taxable years commencing after December 31, 1990:

LSN-100 and LSN 90-3; TSSN-18, TSSN-29, TSSN-33, TSSN-46 and TSSN 90-1

The General Assembly also repealed the capital gains tax and the dividend and interest income tax for taxable years commencing on or after January 1, 1992. (See 1991 Conn. Pub. Acts 3, § 156 (June Spec. Sess.), as amended by 1992 Conn. Pub. Acts 5, § 36 (May Spec. Sess.).) Accordingly, the following rulings and administrative pronouncements are no longer considered determinative with respect to taxable years commencing on or after January 1, 1992:

Ruling Nos. 89-5, 89-33, 89-44, 89-143, 90-50, 91-9, 91-10 and 91-14; Declaratory Ruling No. 90-1; LSN 90-2; TSSN-04; and PS 90-6 (second paragraph)

REPEAL OF ESTATE INCOME TAX: Prior to 1991, a limited number of decedent's estates were subject to an income tax ("estate income tax"). In 1991, the General Assembly enacted a broad-based income tax for taxable years commencing on or after January 1, 1991 on resident individuals, trusts and estates, nonresident individuals, trusts and estates, and part-year resident individuals and trusts. (See 1991 Conn. Pub. Acts 3, §§ 51 to 93, inclusive (June Spec. Sess.).) At the same time, the General Assembly repealed the estate income tax on decedent's estates for taxable years commencing on or after January 1, 1991. (See 1991 Conn. Pub. Acts 3, § 125 (June Spec. Sess.).) Accordingly, Bulletin 10 is no longer considered determinative with respect to taxable years commencing on or after January 1, 1991.

EFFECT OF THIS DOCUMENT: An Announcement is a document that alerts taxpayers to important information. Such information may involve new Department administrative policies or procedures.

EFFECT ON OTHER DOCUMENTS: The above-listed LSNs, TSSNs, rulings, Declaratory Ruling and Bulletin are obsolete and the above-listed PS is obsolete in part.

PLEASE NOTE THE FOLLOWING NEW INFORMATION ABOUT DRS.

FOR FURTHER INFORMATION: To order forms and publications or for further information, call the Department of Revenue Services at 860-297-5962 (Hartford area or out-of-state) or 1-800-382-9463 (in-state). Forms and publications may be ordered through voice-mail 24-hours a day by choosing Option 3 on your touch tone telephone.

Electronic Delivery Options: You can also obtain tax forms and publications 24-hours a day from our Website.

Telecommunications Device for the Deaf (TDD/TT) users only call 860-297-4911 during business hours.

An 94(2)
Income tax
Issued: 6/13/94