DRS: Managing BET Tax

 
Business Entity Tax (BET)

 
 

  1. Can I amend or file and extension?
  2. Common misconceptions

Due date of business entity tax
 
For tax years beginning on or after January 1, 2013, the business entity tax is due every other year.  For a calendar year filer, the filing periods will be as follows:
 
 
BIENNIAL PERIOD (2-Year Period)                   BET DUE DATE AMOUNT DUE:

Beginning 1/1/2013 – Ending 12/31/2014              April 15, 2015    $250

Beginning 1/1/2015 – Ending 12/31/2016              April 15, 2017    $250


Which form do I use?

NOTE:  You must file a timely return even if you do not receive one in the mail.  If your copy does not arrive, call the DRS so that we may check to see if the correct mailing information is on file.


How much is the Business Entity Tax?
  • The amount of the BET is $250.  Payable each taxable year by a business entity.

Can I amend or file an extension?
  • No extension of time will be granted to file Form OP-424.   The return is due on or before the fifteenth day of the fourth month following the end of the business entity’s taxable year. A business entity’s taxable year is its taxable year for federal income tax purposes. If your business reports its income on the calendar year, the due date for Form OP-424 is April 15th of the following year.  If a business entity had a short taxable year for federal income tax purposes, its Form OP-424 would be due on or before the fifteenth day of the fourth month following the end of its short taxable year.
  • There is no provision to amend the return.

How can I file Form OP-424?
  • File electronically. Use the TSC-BUS.   By using our free, fast, simple and secure Internet filing system, you can be sure that your return and payment are received by DRS. You can print out a copy with a confirmation number for your records.  If a NEW TSC USER visit our TSC Business Tax Help Page for information on how to get started; or
  • Use the preprinted Form OP-424 that we mail to you each year.  The preprinted information on the form will ensure that the return and payment are applied correctly to your account; or
  • Download Form OP-424 .  Be sure to accurately enter the entity's Connecticut Tax Registration Number, Federal Employer Identification Number (if one has been issued for the entity), Secretary of State ID Number (if available)(not required), and the complete name and address of the entity.

Business Entity Publications to assist you
  1. IP 2008(26), Q & A on the Business Entity Tax
  2. SN 2013(1), Legislative Changes to the Connecticut Business Entity Tax

Common Misconceptions with BET tax
  1. My business has been inactive, unprofitable or is no longer transacting business in Connecticut, therefore I do not owe the BET tax - If the business is no longer active, you must contact the Connecticut Secretary of the State to dissolve the entity.  It is subject to the tax for the year in which it forms and for all years that it remains registered with the Secretary of the State, including the year that it dissolves.  The BET is NOT prorated if the business entity’s taxable year is a short year.
  2. I received no income from my business, am I still liable for the tax? - Yes. The tax is not based on income.  Any entity that was on the roles of the Secretary of the State for any part of its taxable year is subject to this tax.
  3. I just registered with DRS why am I being billed for BET for earlier years? - As a domestic business entity, for every taxable year (or part thereof) of its legal existence as shown by the records of the Secretary of the State; or As a foreign business entity, for every taxable year (or part thereof) it is required to obtain and maintain a certificate of authority or certificate of registration from the Secretary of the State to transact business in Connecticut.