Instructions For Form Ct-1120 - Connecticut Corporation Business Tax

Interest and Penalties

For detailed information about the penalty waiver process,

see Policy Statement 2010(1), Requests for Waiver of

Interest is computed at 1% per month or fraction of a

Civil Penalties.

month on the underpayment of tax from the original

due date of the return through the date of payment.

Refund Information

Interest due on the underpayment of estimated tax is

Get the refund faster by filing electronically and choosing

computed using Form CT-1120I, Computation of Interest

direct deposit to have the refund directly deposited into

Due on Underpayment of Estimated Tax. Interest on

a checking or savings account.

underpayment or late payment of tax cannot be waived.

If any of the bank information supplied for direct deposit

Penalty for Late Payment or Late Filing

does not match, or the applicable bank account is

The penalty for late payment or underpayment of

closed prior to the deposit of the refund, the refund will

corporation business tax is 10% of the tax due or $50,

whichever is greater. If a request for a filing extension

automatically be mailed.

has been granted, a corporation may avoid a penalty for

Status Letter Requests

failure to pay the full amount due by the original due

Requests for status letters must be submitted in writing

date if it pays:

on the business’s letterhead and must include:

• At least 90% of the tax shown to be due on the return

• Name and address of the business;

on or before the original due date of the return; and

• Connecticut Tax Registration Number;

• The balance due with the filing of Form CT-1120, on

• Tax types for which the tax status is being requested;

or before the extended due date.

• A statement that clearly explains the reason for the

If no tax is due, DRS may impose a $50 penalty for the

status letter request;

late filing of any return or report required by law to be

• The mailing address for the status letter if it is different

filed.

from the address of the business;

Penalty for Willful Failure to File or Pay

• The original signature and title of the authorized

Anyone who willfully fails to pay the tax or file a return

representative making the request; and

will be fined up to $1,000 or imprisoned up to one year,

• A properly executed Form LGL-001, Power of

or both, in addition to any other penalty.

Attorney, signed by an authorized representative

of the business if the status letter is requested by

Penalty for Willful Filing of a Fraudulent or

anyone other than an authorized representative of the

Materially False Return

business.

If you willfully file a tax return you know to be fraudulent

Mail your status letter request to:

or false in any material matter, you may be fined up to

$5,000 or imprisoned from one to five years, or both.

Department of Revenue Services

Compliance Resolution Unit

Request for Status Letter

Penalty for Failure to Disclose Listed

25 Sigourney St Ste 2

Transaction

A penalty of 75% of the amount of the deficiency may be

Hartford CT 06106-5032

imposed when it appears that any part of the deficiency is

DRS accepts hand-delivered status letter requests

due to failure to disclose a listed transaction, as defined

from businesses. However, DRS does not accept status

in IRC §6707A.

letter requests made by email, fax, or telephone. See

Informational Publication 2004(9), Status Letters.

Waiver of Penalty

Recordkeeping

To make a penalty waiver request, taxpayers must

complete and submit Form DRS-PW, Request for

Keep a copy of the tax return, worksheets, and records

Waiver of Civil Penalty, to DRS Penalty Waiver Unit.

of all items appearing on the return until the statute of

Taxpayers may mail Form DRS-PW to the address

limitations expires for that return. Usually, this is three

years from the date the return was due or filed, whichever

listed below or fax it to the Penalty Waiver Unit

at 860-297-4797.

is later. However, if the corporation reports a net operating

loss or credit carryforward or carryback, the statute of

Department of Revenue Services

limitations may expire later.

Penalty Waiver Unit

PO Box 5089

Copies of Returns

Hartford CT 06102-5089

A corporation may request a copy of a previously filed tax

DRS will not consider a penalty waiver request unless it is

return from DRS by completing form LGL-002, Request

accompanied by a fully completed and properly executed

for Disclosure of Tax Return or Tax Return Information.

Form DRS-PW.

Page 8

Instructions For Form Ct-1120 - Connecticut Corporation Business Tax - 2012 Page 8

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