Short Opportunity to Obtain Elimination of Penalty, Reduction of Interest

Hartford – The Department of Revenue Services (DRS) initiated the Connecticut Tax Settlement Incentive Program last week giving certain taxpayers an opportunity to save money on taxes they owe the state.   Under the program, eligible taxpayers will receive a settlement offer letter that eliminates remaining penalty and reduces outstanding interest by 50 percent.  

Department of Revenue Services (DRS) Commissioner Richard Nicholson explained that taxpayers have a limited amount of time to take advantage of the program that will save them money while generating revenue for the state. Taxpayers that do not pay the full Settlement Offer amount by December 15, 2009, forfeit their participation in the program.     

According to Nicholson, “The elimination of remaining penalty and the reduction of a taxpayer’s outstanding interest by 50 percent can mean a substantial savings for taxpayers who take advantage of this program by December 15.” Participation in the Settlement Program will also allow taxpayers to avoid potential enforcement actions to collect their unpaid debt.

Under the program endorsed by Governor M. Jodi Rell, taxpayers may receive a Settlement Offer if they have a bill:

• For an outstanding liability that was issued by DRS on or before August 31, 2009;
• That includes interest;
• That is not part of an approved offer of compromise between DRS and the taxpayer; and
• That is for any tax type administered by the DRS except Motor Carrier or International Fuel Tax Agreement liabilities.

Taxpayers whose debts meet the program criteria can expect to receive a settlement offer from DRS no later than October 20, 2009.   

For more information on this program, visit the DRS website at www.ct.gov/drs/ctsi or call 860-541-4274 during business hours Monday through Friday.

Media calls should be directed to the communications office at (860) 297-5610.