DRS: Reporting State & Local Gov Bond Interest

 

Reporting State & Local Government Bond Interest


General Requirements

 

Financial Institutions are requested to report to the Department of Revenue Services (DRS) interest and dividends of $10 or more, earned by individuals with a Connecticut address, from federal tax exempt securities including bonds, mutual funds, money market funds, unit investment trusts, and including accrued interest on all securities sold.  This report should be filed by the first Friday in April using Form AU-408.

 

All Payers

 

If you have 250 or more accounts, which received this income, the information must be sent using magnetic media.  If you have less than 250 accounts, you may file a paper return. 

Form AU-408, Specifications for Submission of State and Local Government Bond Interest Informationdescribes the necessary file format.  Send the data to:

Thomas Kaminski
Department of Revenue Services
State of Connecticut
Income Tax Audit Unit
450 Columbus Blvd, Suite 1

Hartford CT  06103-1837

Mutual Fund Specific Requirements

Tax exempt government bond mutual funds are also subject to these reportings.  In lieu of individual bond information or CUSIP numbers, these mutual funds are requested to report total distribution to each shareholder.  In order for DRS to properly calculate the amount of interest to be taxed, each fund should furnish one of the following:

  • Percentage of the funds portfolio income distribution attributable to Puerto Rico, Guam, American Samoa, U.S. Virgin Islands, and Connecticut bonds, or
  • Schedule of income by source (income dividend by state) furnished to your shareholders in your year-end statement.

Non-Clearing Firms

 

If you are a non-clearing firm or you do not maintain your own accounts this request needs to be forwarded to the firm that services your accounts.

Since we anticipate many inquiries from your clients regarding their accounts, please make sure that you list your company representative’s name, telephone number, and mailing address on the Form AU-409, Transmittal Form for Submission of Interest Income Information.

Deadline

 

The information requested should be furnished to DRS by the first Friday in April..

 

Further Information

 

Call Thomas Kaminski (860) 541-4569 or email at Thomas.Kaminski@po.state.ct.us  if you have technical questions or need further instruction about the creation of this file.