There is still plenty of time to file taxes, but if you owe money to the state another deadline is fast approaching.
Connecticut’s 2021 Tax Amnesty Program will stop at the end of this month. The program gives people the chance to pay back taxes with reduced interest rates and with no penalties.
It would give anyone an uneasy feeling knowing you owe tax money to the state. Connecticut Department of Revenue Services Commissioner Mark Boughton says this program aims to help.
“We know it’s been difficult and challenging times with coronavirus, all kinds of things going on, but this is just an opportunity to do the right thing and to pay your taxes,” Commissioner Boughton said.
DRS launched the 2021 Tax Amnesty Program in November of last year to help individual filers and businesses pay back taxes.
“You can even set up a payment plan, just call us. The big thing is to communicate with us,” Commissioner Boughton said.
The program lowers interest rates by 75 percent.
“I just settled the case where they owed us from the early 2000s,” Commissioner Boughton said. “It was $1.6 million. Using this program, we got it down to about $700,000 dollars, wrote us a check right away, and they’re all good with the state. So that’s the kind of things that we can do with this program in place.”
The program also waives penalties and the possibility of criminal prosecution for anyone who has underreported, owes money, or did not file at all.
“There have been some long-standing disputes about what people owe that go back decades,” Commissioner Boughton said. “Let’s say you never filed, you know, about 30 percent of the people out there never filed taxes at all ever. So here’s another opportunity. We may owe you money! We may give you a check by the time this is all done.”
The program deadline is January 31. The state legislature determines the set period for the DRS to collect any outstanding tax debt. Commissioner Boughton says the time to act is now.
“They get right with the state, they don’t have to worry about liens or audits or criminal prosecution or anything like that. They simply pay what they owe,” he said.
DRS reports that since November, 10,000 people have used the Tax Amnesty Program. It has brought nearly $40 million back to the state.
That money goes to a myriad of services, including education, childcare, vaccination clinics, public safety, parks, beaches, the arts and more.
“We’re doing great things with this money,” Commissioner Boughton said. “We’re paying for police officers, firefighters, teachers, all kinds of important services that people need so that’s why we should pay our taxes and why it’s so important.”
DRS says they will not be doing similar programs any time soon. If you want to utilize the 2021 Tax Amnesty Program, visit getrightCT.com.