Connecticut State Department of Revenue Services

Upcoming CT DRS webinar: Select to register for the upcoming Withholding Forms W-2 and 1099 Annual Filing Webinar on Wednesday, December 4, 2024, at 10:00 a.m.

Other Helpful Information

Electronic Filling and Payment Waiver

Any person, other than return preparers, required to file a return electronically or to pay the tax by EFT may request a waiver of the requirement. The waiver must be submitted using Form DRS-EWVR, Electronic Filing and Payment Waiver Request, to the Commissioner at least 30 days before the due date of such required filing or required payment. See Policy Statement 2020(2), Requests for Waiver of Electronic Filing and Electronic Payment Requirements.

Withholding Tax Penalty and Interest

Late Payment Penalty

The penalty for late payment or underpayment of tax due is 10% of the amount due on all returns.

Penalty for Failure to Pay Electronically

The following graduated penalty amounts will apply if you fail to remit payments electronically:

  • First offense – 10% penalty on the amount of the required tax payment, but not more than $2,500;
  • Second offense – 10% penalty, but not more than $10,000;
  • Third and subsequent offenses – 10% penalty.

Late Filing Penalty

In the event no tax is due, the Commissioner of Revenue Services may impose a $50 penalty for failure to file any return or report that is required by law to be filed.

Interest

If you are filing a late or amended return, interest is computed on the underpayment at the rate of 1% per month or fraction of a month from the due date until the date of payment.

Required Information Returns

A penalty of $5 per statement (up to a total of $2,000 per calendar year) is imposed for failure to provide federal Form W-2 to each employee and a copy to DRS, unless such failure is due to reasonable cause.

Closing a Withholding Account

If an employer goes out of business or permanently stops paying wages, the employer must notify DRS immediately by electronically filing Form CT-941, Connecticut Quarterly Reconciliation of Withholding, for the current quarter. The employer must check the box indicating that the employer no longer has employees and enter the last payroll date on the line provided on Form CT-941 or send written notification to:

Department of Revenue Services
Registration Unit
PO Box 2937
Hartford CT 06104-2937

An employer must also file Form CT-W3, Connecticut Annual Reconciliation of Withholding, issue Forms W-2 to all employees showing their wages and withholding, and submit copies of all Forms W-2 to the Department of Revenue Services.

If the business had employees, it must also cancel its registration with the Connecticut Department of Labor.

Filing Amended Withholding Returns

FORMS CT-941, CT-945: All withholding forms, including amended forms, must be electronically filed and paid. Amend Forms CT-941 or CT-945 using myconneCT by logging into your account. You must amend Form CT-941 for each quarter that was filed in error. To claim a refund, the return must be filed within 3 years of the original due date of the return. However, no refund will be made to an employer of tax deducted and withheld from the wages of employees. If you file an amended federal Form 941or 945or if your return is changed or corrected by the IRS, you must file Form CT-941X within 90 days.

FORMS CT-W3, CT-1096: Amend or supplement information returns through myconneCT. Amended and supplemental filings can only be done using the Single Employer login or as a bulk filer using the Single Client - Key and Send option.

File a Paper Withholding Return

A paper Form CT-941, Form CT-941X, Form CT-8109, CT-945, CT-1096, CT-W3, CT-945 ATHEN, and CT-1096 ATHEN 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. See Electronic Filing and Payment Waiver for more information.

If you file a paper return, print in blue or black ink. Do not use staples.

Please note that each form is year specific. To prevent any delay in processing your return, the correct year’s form must be submitted to the Department of Revenue Services (DRS).

Mail paper return to:

Department of Revenue Services
State of Connecticut
PO Box 2931
Hartford CT 06104-2931

Make check payable to Commissioner of Revenue Services. To ensure payment is applied to the correct account, write your Connecticut Tax Registration Number and the quarter to which the payment applies on the front of your check. Be sure to 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. See Policy Statement 2016(4), Designated Private Delivery Services and Designated Types of Service, for a current list of qualified PDSs.

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.

Obtain Tax Clearance

  • IP 2018(10), Successor Liability and Request for Tax Clearance
  • AU-866, Request for a Tax Clearance Certificate

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.

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.

Common Filing Errors to Avoid

  • Not filing and paying electronically. Employers and payers are required to file all withholding forms and remit withholding payments electronically.
  • Not filing a return.  Do not skip filing a return because you have no withholding to report. You MUST file a ZERO return.
  • Registering for withholding prior to hiring employees.  Do not register for withholding because you anticipate hiring employees in the future. You will be required to begin filing returns once you are registered, so do not register for withholding until you are absolutely certain you are ready to hire employees.

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.

Change Business Structure

You must notify the Department's Registration Unit in writing if you change your business structure such as changing the structure from a sole proprietor to a partnership or corporation.  Send a letter explaining the change to:

Department of Revenue Services
Registration Unit
P.O. Box 2937
Hartford, CT 06104-2937

If you are required to obtain a new Federal Employer Identification Number (FEIN) in connection with the change in business structure, you will also be required to obtain a new Connecticut Tax Registration Number. For example, if your business was initially formed as a sole proprietorship and you later formed a partnership with another person, you will be required to obtain a new FEIN from the Internal Revenue Service for the partnership.  You will also have to obtain a new Connecticut Tax Registration Number. Visit myconneCT to register your business.  You must also cancel your existing Connecticut Tax Registration Number by following the instructions for Closing a Business.

Change Business Name

Sole Proprietorships

If you want to add or change the business's trade name, you may do so by logging in myconneCT or send a letter to our Registration Unit with this information. Please mail the notification to:

Department of Revenue Services
Registration Unit
450 Columbus Blvd.
Hartford, CT 06103

Remember, if you are adding or changing a trade name for your business, you should register that trade name at the town hall in which the business is located.

Other Entities

If a corporation, partnership, limited liability company (LLC) or other entity that is registered with the Office of the Connecticut Secretary of the State changes its name, it must send a letter to the Department of Revenue Services with this information along with documentation that the name was also changed with the Secretary of the State's office. You may request a name change through myconneCT or send DRS notification of the name change to:

Department of Revenue Services
Registration Unit
450 Columbus Blvd.
Hartford, CT 06103

IMPORTANT: If the entity was required by the Internal Revenue Service (IRS)  to obtain a new Federal Employer Identification Number in connection with the change of name, it will also have to obtain a new Connecticut Tax Registration Number. It must close all existing tax accounts with DRS and visit myconneCT, to register and obtain the new number.

Closing a Business

If an employer goes out of business or permanently stops paying wages, the employer must notify DRS immediately by filing Form CT-941, Connecticut Quarterly Reconciliation of Withholding, for the current quarter. The employer must check the box indicating that the employer no longer has employees and enter the last payroll date on the line provided on Form CT-941 or send written notification to:

Department of Revenue Services
Registration Unit
PO Box 2937
Hartford CT 06104-2937

An employer must also file Form CT-W3, Connecticut Annual Reconciliation of Withholding, issue Forms W-2 to all employees showing their wages and withholding, and submit copies of all Forms W-2 to the Department of Revenue Services.

If the business had employees, it must also cancel its registration with the

Department of Revenue Services
Registration Unit
PO Box 2937
Hartford CT 06104-2937

An employer must also file Form CT-W3, Connecticut Annual Reconciliation of Withholding, issue Forms W-2 to all employees showing their wages and withholding, and submit copies of all Forms W-2 to the Department of Revenue Services.

If the business had employees, it must also cancel its registration with the Connecticut Department of Labor.

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 at portal.ct.gov/DRS-myconneCT. Log in to myconneCT, open the More … menu, locate the Correspondence group and click the Send a Message hyperlink.