TAX NEWS - 2010

Connecticut Tax: Sales Tax Holiday and Info for Taxpayers Required to Pay Taxes Electronically

As you know, if a taxpayer is required to pay Connecticut taxes electronically and is using the Department's Taxpayer Service Center (TSC), they must initiate the transaction no later than 4:30 p.m. Eastern time on the last banking day prior to the due date.  For example, if the due date of the return is Monday, they must initiate the transaction no later than 4:30 p.m. Eastern time on the preceding Friday (assuming Friday is a banking day). The purpose behind these requirements is to ensure that the Department receives the taxes owed to the State on the day the taxes are due.

Using the above example, if the taxpayer initiates the transaction on Monday, the Department will not receive the taxes owed to the State until Tuesday.  Therefore, because the Department will not receive the taxes until after the due date, they will be subject to a statutorily imposed penalty.  In an effort to assist taxpayers in meeting their Connecticut tax obligations, the Department wants to make sure that taxpayers are aware that they have another option available to them in such situations.

Specifically, if they are required to pay taxes electronically and they attempt to pay on the actual due date (Monday in the above example), they may be able to initiate a same day FedWire funds transfer through their bank.  Through this FedWire process, the Department will receive your payment the same day.  For full information regarding the FedWire process, including bank charges and cutoff times, the taxpayer must contact their bank directly. Normally, there is a charge to the taxpayer for using FedWire. If the taxpayer's bank is able to process this type of transfer, the taxpayer should call the DRS EFT unit at 860-297-4973 to receive specific instructions on how to complete the transfer.