Connecticut State Department of Revenue Services

Other Helpful Information

Waiver of Penalty

If you believe that a penalty should be waived because the failure to pay the tax on time was due to reasonable cause and was not intentional or due to neglect, you have the right to request a penalty waiver. Interest cannot be waived. You MUST pay all tax and interest due before a penalty waiver request will be considered.

For detailed information about the penalty waiver, see Penalty Waiver Request, Offer of Compromise or Protest.

Refund Information

Get the refund faster by filing electronically and choosing direct deposit. Complete Lines 18a, 18b, and 18c 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.

Rounding Off to Whole Dollars

You must round off cents to the nearest whole dollar on your return and schedules. If you do not round, DRS will disregard the cents. Round down to the next lowest dollar all amounts that include 1 through 49 cents. Round up to the next highest dollar all amounts that include 50 through 99 cents. However, if you need to add two or more amounts to compute the amount to enter on a line, include cents and round off only the total.

Example: Add two amounts ($1.29+$3.21) to compute the total ($4.50) to enter on a line. $4.50 is rounded to $5.00 and entered on a line.

Recordkeeping

Keep a copy of the tax return, worksheets, 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.

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.

Copies of Returns

Copies of previously-filed Connecticut income tax returns may be requested from DRS by completing LGL‑002, Request for Disclosure of Tax Returns or Tax Return Information. Requests are normally processed in three weeks.

Other Taxes for Which the Trust or Estate May be Liable

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

Connecticut Income Tax Withholding

Any trust or estate 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 Regs. § 12‑706(b)‑1. See the current edition of the Connecticut Employer's Tax Guide, Circular CT.

The fiduciary of the trust or estate must register with DRS if it is liable for any taxes administered by DRS.

Visit the DRS website at portal.ct.gov/DRS-myconneCT to register online. If the trust or estate already has a Connecticut Tax Registration Number, the fiduciary may register for any additional taxes for which the trust or estate is liable by logging in to myconneCT and registering for additional account types.

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. See Special Notice 2003(11), 2003 Legislation Affecting the Controlling Interest Transfer Tax.

Surety Bond in Lieu of Special Accruals

The fiduciary may elect to defer payment of Connecticut income tax on items of special accrual by filing a surety bond with DRS for an amount not less than the additional Connecticut income tax that would be payable if no surety bond or other security were filed. If you choose this option, you must file Form CT‑1041 for the taxable year when the trust changed its residence and include a separate statement showing the nature and amount of each item of accrual as of the date of change of residence, together with a computation of the additional Connecticut income tax that would be due if the election to file a surety bond had not been made.

A fiduciary filing Form CT‑1041 electronically should retain a copy of the statement for three years from the date of the filing. The statement must be provided to DRS upon request.

For more information on the requirements for a surety bond, see Conn. Agencies Regs. § 12‑717(c)(4)‑1, and download the following form(s):

  • Form CT‑12‑717A, Change of Resident Status - Special Accruals Connecticut Surety Bond Form; or
  • Form CT‑12‑717B, Change of Resident Status - Special Accruals Other Acceptable Security Form.

Taxable Year and Method of Accounting

The fiduciary of a trust or estate must use the same taxable year and method of accounting for Connecticut income tax purposes used for federal income tax purposes.

If the taxable year or method of accounting is changed for federal income tax purposes, the same changes must be made for Connecticut income tax purposes. If a return for a period of less than 12 months is filed for federal income tax purposes, the fiduciary must also file a short period return for Connecticut income tax purposes.

Amended Returns

Use Form CT‑1041, Connecticut Income Tax Return for Trusts and Estates, to amend a previously‑filed Connecticut income tax return for trusts and estates. Check the Amended Return box on the front of Form CT‑1041. Enter the amount paid with the original return on Line 12. If an amended Form CT‑1041 is filed to have an overpayment of Connecticut income tax refunded or credited, it must be filed before the Connecticut statute of limitations expires. Generally, the Connecticut statute of limitations for refunding or crediting any Connecticut income 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 not timely filed, a penalty may be imposed. If additional tax is due, interest will apply. See Interest and Penalties.

Do not file an amended Form CT‑1041 to have an overpayment refunded instead of applied to next year’s estimated tax. The elections you made on the original return cannot be changed by filing an amended Form CT‑1041.

The following circumstances require the filing of an amended Form CT‑1041. Attach a statement explaining the reason for filing an amended return.

An amended Form CT‑1041 may be filed through myconneCT, the MeF Program, or by paper return. If filing by paper, each amended return must be mailed to DRS in separate envelopes.

1. The IRS or federal courts change or correct the federal income tax return and the change or correction results in the trust’s or estate’s Connecticut income tax being overpaid or underpaid.

File no later than 90 days after the final determination. If the fiduciary files an amended Form CT‑1041 no later than 90 days after the final determination, any Connecticut income tax overpayment resulting from the final determination will be refunded or credited to the trust or estate even if the Connecticut statute of limitations has otherwise expired.

2. The fiduciary of the trust or estate filed a timely amended federal income tax return and the amendment results in the Connecticut income tax being overpaid or underpaid.

File no later than 90 days after the final determination. If the fiduciary files an amended Form CT‑1041 no later than 90 days after the final determination, any Connecticut income tax overpayment resulting from filing the timely amended federal income tax return will be refunded or credited to the trust or estate even if the Connecticut statute of limitations has otherwise expired.

3. The fiduciary claimed a credit for income tax paid to a qualifying jurisdiction on the original income tax return and the tax officials or courts of that qualifying jurisdiction made a change or correction to the income tax return and the change or correction results in the Connecticut income tax being overpaid or underpaid by increasing or decreasing the amount of the allowable credit.

File no later than 90 days after the final determination. If the fiduciary files an amended Form CT‑1041 no later than 90 days after the final determination and the fiduciary claimed credit for income tax paid to a qualifying jurisdiction on the original income tax return, any Connecticut income tax overpayment resulting from the final determination will be refunded or credited to the trust or estate even if the Connecticut statute of limitations has otherwise expired.

4. The fiduciary claimed a credit for income tax paid to a qualifying jurisdiction on the original income tax return and the fiduciary filed a timely amended income tax return with that qualifying jurisdiction and the amendment results in the Connecticut income tax being overpaid or underpaid by increasing or decreasing the amount of the allowable credit.

File no later than 90 days after the final determination. If the fiduciary files an amended Form CT‑1041 no later than 90 days after the final determination and the fiduciary claimed credit for income tax paid to a qualifying jurisdiction on the original income tax return, any Connecticut income tax overpayment resulting from the final determination will be refunded or credited to the trust or estate even if the Connecticut statute of limitations has otherwise expired.

5. None of the above circumstances apply, but the fiduciary made a mistake or omission on the Connecticut income tax return and the mistake or omission results in the Connecticut income tax being overpaid or underpaid.

File no later than three years after the due date of the return, or if you filed a timely request for an extension of time to file, three years after the date of filing the return or three years after the extended due date, whichever is earlier.