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Special Notice - Form 394 ESA - Due on or before June 15, 1991

This TSSN is obsoleted by AN 94(2)

Form 394 ESA, used to report the first estimated tax payment for the 1991 Connecticut Capital Gains, Dividends and Interest Income Tax, must be filed on or before June 15, 1991. You may not be required to file this estimated tax return. This notice will help you determine if you are required to file.

NOTE: Proposed changes to the tax laws will not become effective before July 1, 1991 and will not affect the requirement to file Form 394 ESA on or before June 15, 1991. A Taxpayer who is required to file an estimate and does not file will be assessed penalty and interest.

WHO MUST FILE AN ESTIMATED TAX RETURN?

Capital Gains*
  • Any resident who estimates a tax due of $2,000 or more on a gain recognized between January 1, 1991 and May 31, 1991; and
  • Any nonresident who estimates tax due of $2000 or more on a gain recognized from the sale of Connecticut real property between January 1, 1991 and May 31, 1991.

*Capital gains are taxed at 7%.

Dividends and Interest Income**

Any resident who estimates a tax due of $200 or more for calendar year 1991 or whose tax due was more than $200 for 1990.

**Dividends and Interest Income Tax applies to residents whose adjusted gross income equals or exceeds $54,000. The tax rate is between 1% and 14%. See schedule of rates on Form 394 ESA.

WHEN IS FORM 394 ESA DUE?

Your estimate must be received or U.S. postmarked no later than June 15, 1991 to be considered timely. (For those taxpayers not filing on a calendar year basis: no later than the 15th day of the 6th month of the income year.)

HOW MUCH MUST I PAY?

  • 100% of the Capital Gains Tax liability for the period January 1, 1991 to May 31, 1991; and/or

  • 50% of the Dividends and Interest Income Tax liability for calendar year 1991.

WHAT HAPPENS IF I SHOULD FILE, BUT I DO NOT FILE?

Failure to file, underpayment, or late payment of the estimated tax will result in a penalty of $50 or 10% of the underpayment, whichever is greater, and an interest charge of 1 1/4% per month from the due date of the estimated tax until payment is made.

Capital Gains
  • Penalty and interest will be assessed if the payment does not equal:
  • 100% of 1991 Capital Gains Tax for period 1-1-91 through 5-31-91 OR
  • 60% of 1990 Capital Gains Tax, WHICHEVER IS LESS

Dividends and Interest Income
Penalty and interest will be assessed if the payment does not equal:

 

  • 45% of Dividends and Interest Income Tax for calendar year 1991 OR
  • 60% of 1990 Dividends and Interest Income Tax, WHICHEVER IS LESS

MAY I CREDIT A PRECEDING YEAR'S OVERPAYMENT AGAINST MY CURRENT YEAR'S ESTIMATED TAX LIABILITY?

Yes, but only if you have filed a completed, not a tentative, 1990 Capital Gains, Dividends, and Interest Income Tax Return prior to June 15, 1991, disclosing the amount of the overpayment.

ARE ANY OTHER ESTIMATED TAX PAYMENTS REQUIRED FOR THE CAPITAL GAINS, DIVIDENDS, AND INTEREST INCOME TAX?

Form 394 ESB, due on or before February 15, 1992, must be filed by any taxpayer who estimates a total tax liability of more than $2000. If your 1991 tax liability for Capital Gains, Dividends, and Interest Income Tax is not more than $2000, you are not required to file Firm 394 ESB.