DRS: 2013 Connecticut Tax Amnesty Collects up to $180 Million

2013 Connecticut Tax Amnesty Collects up to $180 Million


Most Successful Tax Amnesty Program in State History


HARTFORD – Today the Department of Revenue Services (DRS) announced the results of the 2013 Tax Amnesty program: a range between $175 -$180 million was collected, making it the largest tally generated via a Connecticut amnesty program, and thus, the most successful Tax Amnesty program in state history.


The program also exceeded expectations. Governor Dannel P. Malloy and the Connecticut General Assembly had conservatively budgeted $35 million of program revenue into the general fund when the Tax Amnesty program was approved in June 2013. The excess funds collected will likely be used to restore the rainy day fund.


Running from September 16 to November 15, the 2013 Tax Amnesty program was the most broad-based program ever offered by the state: both individuals and businesses could apply for a 75% reduction of interest owed on back taxes for any period ending on or before November 30, 2012, as well as have all penalties waived. All state taxes were eligible for amnesty even if the taxpayer was in litigation with the state, in audit, had under-reported past taxes, or had even never paid taxes due. The only taxes excluded from amnesty were the motor carrier road tax and taxes not administered by DRS.


Department of Revenue Services Commissioner Kevin B. Sullivan announced the 2013 Connecticut Tax Amnesty results during a press conference at the State Capitol today stating he was proud of taxpayers who used this opportunity as a “time to make it right.”


“We depend on taxes collected from individuals and business not only for the governance of our state, but also for the programs, services, and investments that Connecticut provides for its people,” said Commissioner Sullivan. “It is important that all Connecticut taxpayers pay their fair share, and the Amnesty program allowed delinquent taxpayers to come forward in record numbers to do the right thing.”


Past amnesty programs have yielded various amounts, including $25 million in 2009, $109 million in 2002, $46 million in 1995, and $54 million in 1990. The 2013 program differs from past programs due to stiff penalties for not coming forward during the amnesty period, including a 25% penalty and possible criminal prosecution. Delinquent taxpayers are now responsible for all penalties as well as 100% of the interest owed on their tax debt.


“Amnesty programs return more to the state on behalf of all taxpayers than would likely be realized through the expense of usual collection efforts; we can now focus enforcement on those who have failed to come forward,” added Commissioner Sullivan. “We will find them, and we will do our best to work with them. For example, we can set up payment plans so that even now that the amnesty program has ended, individuals and businesses still have the chance to make it right.”


Media calls should be directed to the communications office at (860)297-5610 or emailed to sarah.kaufman@po.state.ct.us.


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Content Last Modified on 1/3/2014 11:10:54 AM