Connecticut State Department of Revenue Services

Other Helpful Information

Electronic Filing and Payment Waiver

If the PE can show that paying electronically creates an undue hardship, the Commissioner of Revenue Services may grant a one‑year waiver of the electronic filing and payment requirement. Request a waiver by completing Form DRS‑EWVR, Electronic Filing and Payment Waiver Request, no fewer than 30 days before the due date of your first electronic filing and payment. See Policy Statement 2020(2), Requests for Waiver of Electronic Filing and Electronic Payment Requirements.

File a Paper Return

A paper return may be filed only if a waiver from the electronic filing requirement has been granted. To apply for a waiver from the electronic filing requirement, complete Form DRS‑EWVR, Electronic Filing and Payment Waiver Request.

Mail a paper return without payment to:

Department of Revenue Services
State of Connecticut
PO Box 2967
Hartford CT 06104-2967

Mail a paper return with payment to:

Department of Revenue Services
State of Connecticut
PO Box 5019
Hartford CT 06102-5019

Make check payable to Commissioner of Revenue Services. To ensure payment is applied to your account, write “2023 Form CT‑1065/CT‑1120SI” and the PE’s FEIN on the front of your check. Sign your check and paper clip it to the front of your return. DRS may submit your check to your bank electronically. Do not send cash.

The 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 these designated PDSs qualify. This list is subject to change. See Policy Statement 2016(4), Designated Private Delivery Services and Designated Types of Service, for a current list of qualified PDSs.

Waiver of Penalty

To make a penalty waiver request, complete and submit Form DRS-PW, Request for Waiver of Civil Penalty, to the DRS Operations Bureau/Penalty Waiver through myconneCT, by mail, or fax.

For more information about the penalty waiver process, see Penalty waiver request, offer in compromise or protest (ct.gov)

Pass-Through Entity Tax Refund

A Connecticut PE Tax overpayment may be refunded to the PE or applied to the PE’s 2023 estimated PE Tax. The overpayment will be treated as estimated tax paid on the due date of the first quarter estimate if the tax return is filed on time or if the tax return is filed within the extension period if a timely request for extension was filed. A request to apply an overpayment to the following income year is irrevocable.

Direct Deposit

Get the refund faster by choosing direct deposit. Complete Lines 6c, 6d, and 6e of Part 1, Schedule A to have the refund directly deposited into a checking or savings account.

If any of the bank information supplied for direct deposit does not match or the applicable bank account is closed prior to the deposit of the refund, the refund will automatically be mailed.

Offset Against Debts

If the PE is due a refund, all or part of the overpayment may be used to pay outstanding debts or taxes. Any remaining balance will be refunded to the PE. If the refund is reduced, DRS will mail an explanation for the reduction.

Recordkeeping

Keep a copy of the tax return, worksheets used, 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. This information may be needed to prepare future returns or to file amended returns.

Requirement to Attach Copies of Federal Forms

Taxpayers filing Form CT‑1065/CT‑1120SI electronically should retain copies of completed federal Form 1065, U.S. Return of Partnership Income, or federal Form 1120S, U.S. Income Tax Return for an S Corporation, for three years from the date of filing. The forms must be provided to DRS upon request.

Taxpayers who complete a paper Form CT‑1065/CT‑1120SI are required to attach a copy of completed federal Form 1065, U.S. Return of Partnership Income, or federal Form 1120S, U.S. Income Tax Return for an S Corporation. Do not attach copies of federal Schedule K‑1 (Form 1065), Partner’s Share of Income, Deductions, Credits, etc., or federal Schedule K‑1 (Form 1120S), Shareholders Share of Income, Deductions, Credits, etc.

Other Taxes for Which the Pass-Through Entity May be Liable 

The information that follows is a general description of other Connecticut taxes for which a PE may be liable. Failure to pay these or any taxes for which the PE is liable may subject the PE to civil and criminal penalties.

Connecticut Income Tax Withholding

Any PE that maintains an office or transacts business in Connecticut (regardless of the location of the payroll department) and is considered an employer for federal income tax withholding purposes must withhold Connecticut income tax from Connecticut wages as defined in Conn. Agencies Reg. § 12‑706(b)‑1. See the current edition of the Connecticut Employer's Tax Guide, Circular CT.

Connecticut Sales and Use Taxes

A PE may be responsible for filing sales and use tax returns. Sales tax is due if the company sells taxable goods or services. Use tax is due on the purchase of taxable goods or services from out-of-state retailers or Connecticut retailers who have not collected the sales tax. Use Form OS-114, Connecticut Sales and Use Tax Return, to report both sales tax and business use tax.

Controlling Interest Transfer Taxes

Tax is imposed on the sale or transfer for consideration of a controlling interest in an entity where the entity owns, directly or indirectly, an interest in Connecticut real property. This tax is reported on Form AU‑330, Connecticut Controlling Interest Transfer Tax Return.

Real Estate Conveyance Tax

If a PE transfers real estate in Connecticut, it must complete and file Form OP‑236, Connecticut Real Estate Conveyance Tax Return, in the town in which the real estate is situated.

Registration

A PE must register with the Connecticut Department of Revenue Services (DRS) if it is liable for any taxes administered by DRS. If the PE does not have a Connecticut Tax Registration Number, the PE may register through myconneCT. If the PE already has a Connecticut Tax Registration Number, additional taxes for which the PE is liable may be added to the registration online through myconneCT.

Abusive Tax Shelters

Any individual or business entity that fails to disclose participation in an abusive tax shelter designated by the Internal Revenue Service (IRS) as a listed transaction is subject to audit penalties of 75% of the tax deficiency that results from the tax shelter activity. To fulfill the Connecticut disclosure requirement, any taxpayer (individual or entity) that has participated in a listed transaction must complete Form CT‑8886, Connecticut Listed Transaction Disclosure Statement. Form CT‑8886 must be completed for each taxable year for which a taxpayer participates in, or receives a benefit from, a listed transaction.

You must retain the completed Form CT‑8886 with your tax records for the tax year the form is required. Form CT‑8886, along with federal Form 8886, Reportable Transaction Disclosure Statement, including all supplemental statements and any required federal Schedule M‑3, must be retained for a period of six years after the due date of required completion. Form CT‑8886 and supporting documents must be provided to DRS upon request.

Accounting Period and Method of Accounting

A PE’s accounting period and method of accounting for Connecticut PE Tax purposes must be the same as its accounting period and method of accounting for federal PE tax purposes.

If a PE’s accounting period or method of accounting is changed for federal PE Tax purposes, the same change must be made for Connecticut PE Tax purposes.

Amended Returns

An amended Form CT‑1065/CT‑1120SI must be filed electronically through myconneCT or the MeF Program, unless you have an electronic filing waiver. See How to File.

Check the “Amended Return” box on Form CT‑1065/CT‑1120SI to amend a previously‑filed Form CT‑1065/CT‑1120SI. If an amended return is filed to have an overpayment of Connecticut Pass‑Through Entity Tax (PE Tax) refunded, the overpayment will be refunded to the PE. However, the amended Form CT‑1065/CT‑1120SI must be filed before the Connecticut statute of limitations expires. Generally, the statute of limitations for refunding any Connecticut PE Tax overpayment expires three years after the due date of the return, but if a timely request for an extension of time to file a return was filed, the statute of limitations expires three years after the extended due date of the return or three years after the date of filing the return, whichever is earlier. If an amended return is filed to report an underpayment of Connecticut PE Tax, interest will apply and, if the amended return is not timely filed, a penalty may be imposed. See Interest and Penalties. An amended Form CT‑1065/CT‑1120SI must be filed under the following circumstances:

1. The IRS or federal courts change or correct the PE’s federal return and the change or correction results in the Connecticut PE Tax being overpaid or underpaid.

 File no later than 90 days after the final determination by the IRS or federal courts.
 2. The PE files a timely amended federal return and the amendment results in the Connecticut PE Tax being overpaid or underpaid. File no later than 90 days after the final determination by the IRS.
3. If neither of the circumstances above apply, but the PE made a mistake or omission on its Form CT‑1065/CT‑1120SI and the mistake or omission results in the Connecticut PE Tax being overpaid or underpaid.
 File no later than three years after the due date of the return or, if a timely request for an extension of time to file the return was filed, three years after the extended due date of the return or three years after the date of filing the return, whichever is earlier.

Power of Attorney

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.

Change of Address

Taxpayers can change their address through myconneCT.

  1. Log in to myconneCT.
  2. Open the More... menu.
  3. Locate the Taxpayer Updates group and click the Manage Names & Addresses hyperlink.
  4. Continue to follow the prompts on the screen.