DRS: IP 94(8.4), 1998 Connecticut Federal/State Electronic Filing Handbook

 

STATE OF CONNECTICUT
DEPARTMENT OF REVENUE SERVICES

450 Columbus Blvd
Hartford CT 06103
 
 
 
 
 
 

 
 

 

This Informational Publication has been obsoleted.

This Informational Publication has been cited in IP 96(8.2)

IP 94(8.4)

Connecticut Federal / State Electronic Filing Handbook



TABLE OF CONTENTS

I. FEDERAL/STATE ELECTRONIC FILING

II. APPLICATION TO PARTICIPATE IN THE FEDERAL/STATE ELECTRONIC FILING PROGRAM

III. ACCEPTANCE PROCESS

IV. CONNECTICUT PORTION OF THE ELECTRONIC RETURN

V. EXCLUSIONS FROM ELECTRONIC FILING

VI. TRANSMITTING THE CONNECTICUT ELECTRONIC RETURN

VII. CONNECTICUT ACKNOWLEDGMENT OF ELECTRONIC RETURNS

VIII. REJECT CODES

IX. FORM CT-8453

X. REFUNDS

XI. BALANCE DUE

XII. ACKNOWLEDGMENTS

XIII. FRAUD AWARENESS

XIV. RESPONSIBILITIES OF ELECTRONIC RETURN ORIGINATORS /TRANSMITTERS

XV. DELAYS AND PROBLEMS

XVI. CONN TAX

XVII.  ELECTRONIC FILING HELP DESK

XVIII. APPENDIX A - FORMS AND INSTRUCTIONS

  • Form CT-8633, Application to Participate in the Individual Income Tax Electronic Filing Program

  • Form CT-8453, Income Tax Declaration for Electronic Filing by Individuals

  • CT-1040V, 1997 Connecticut Electronic Filing Payment Voucher


I.  FEDERAL/STATE ELECTRONIC FILING

INTRODUCTION

The Connecticut Department of Revenue Services (DRS) joined with the Internal Revenue Service (IRS) in 1994 to offer electronic filing of federal and state individual income tax returns. The Federal/State Electronic Filing Program (ELF) allows taxpayers to file both their federal and state returns through their tax preparer. This program is an effort to provide "one stop shopping" for tax return preparation and filing. An indication of the growing popularity of ELF is that for taxable year 1997, DRS received 100,000 electronically filed tax returns – double the number received for taxable year 1996. The information contained in this handbook explains the program and changes from last year.

New For 1998

Starting this year, DRS will no longer hold refunds until Form CT-8453, Income Tax Declaration for Electronic Filing by Individuals, is received. This means that most refunds should be mailed within 4 days of acknowledgment. Form CT-8453 is still required to be mailed to the Department within 24 hours of DRS acknowledgment.

DRS also eliminated the requirement for batch header Form EF-001.

Returns accompanied by Form CT-8379, Nonobligated Spouse Claim, cannot be electronically filed.

Connecticut has changed the electronic filing acknowledgment provider from EDS TaxConnect to Centralized State Acknowledgment System (StAck). Refer to Page 14 for additional information.

CONNECTICUT ELECTRONIC FILING CALENDAR

For Tax Period January 1, 1998 to December 31, 1998

Begin Federal/State Software Testing………………….…………………….…….October 27, 1998

Federal/State Electronic Filing Becomes Operational……………………….…January 15, 1999

Begin Transmitting Returns to Internal Revenue Service…………….….…January 15, 1999

Last Date to Timely File Electronic Returns…………….......……………………April 15, 1999

Last Date for Extended Filing…………………………………………………….....…..October 15, 1999

PUBLICATIONS

The following publications describe the process of the Fed/State Electronic Filing Program:

Internal Revenue Service Publications

Publication 1345 – Handbook for Electronic Filers of Individual Income Tax Returns

Publication 1346 – Electronic Return File Specifications and Record Layouts for Individual Income Tax Returns

Publication 1436 – Test Package for Electronic Filing of Individual Tax Returns

Publication 1545 – The Electronic Filing Logo Guideline for Effective Use

Connecticut Department of Revenue Services Publications

IP 94(8.4), Connecticut Federal/State Electronic Filing Handbook

Connecticut Electronic Filing of Individual Income Tax Returns Information for Software Developers

Connecticut Electronic Filing Test Package

How Federal/State Electronic Filing Works

Tax preparers, electronic return originators (EROs) and transmitters accepted in the Internal Revenue Service (IRS) Electronic Filing Program may participate in the Federal/State Electronic Filing Program. Both the federal return and the Connecticut return may be filed in one transmission to the IRS’s Andover Service Center. The IRS, after acknowledging to the transmitter acceptance of the federal return and the receipt of state data, then creates a file containing state information. This file is available for electronic retrieval by authorized DRS personnel. Once DRS receives the information, it is entered into the DRS Income Tax Return Processing system.

DRS provides an electronic acknowledgment to indicate receipt of the state component of returns, using the Centralized State Acknowledgment System (StAck).

Taxpayers can elect to have their Connecticut refunds directly deposited by completing Part II of the Form CT-8453, Income Tax Declaration for Electronic Filing by Individuals. If the direct deposit option is not chosen, most refund checks will be mailed within four days from the date of a successfully transmitted return.

The Form CT-8453 signature document must be mailed to DRS within 24 hours of DRS acknowledgment.

Who May Participate

Federal/State Electronic Filing for Connecticut returns is open to participants who have been accepted in the federal Electronic Filing Program and transmit returns to the IRS Andover Service Center. A participant may be an electronic return originator (ERO), transmitter, or software developer.

1. All participants must use software approved for State of Connecticut electronic filing.

2. All participants must apply to DRS by submitting a completed Form CT-8633, Application to Participate in the Individual Income Tax Electronic Filing Program.

3. Participants must obtain approval to participate from DRS. DRS approval is separate and distinct from IRS acceptance.

4. EROs electronically file all Connecticut returns with IRS Service Center.

5. EROs collect Form CT-8453.

6. Upon receipt of IRS acknowledgment of acceptance of the return, the EROs mail signature documents to respective agencies. The Connecticut signature document (Form CT-8453) must be mailed to DRS within 24 hours of the DRS acknowledgment.

If you are an electronic filing software developer or transmitter wishing to participate, you must also:

1.   Subscribe to the Centralized State Acknowledgment System (StAck); and

2. Demonstrate to DRS your ability to transmit returns and receive and distribute acknowledgments through the DRS testing process.


II.  APPLICATION TO PARTICIPATE IN FEDERAL/STATE ELECTRONIC FILING PROGRAM

In order to participate in the Federal/State Electronic Filing Program, participants must be accepted by or have applied to the Internal Revenue Service (IRS). New applicants can apply to the IRS Service Center in Andover, Massachusetts, using federal Form 8633, Application to Participate in the Electronic Filing Program. The IRS will assign an Electronic Filing Identification Number (EFIN) or an Electronic Transmitter Identification Number (ETIN), or both.

If you have applied to the IRS but have not been issued an EFIN or ETIN, you must complete and forward to the Connecticut DRS Form CT-8633, Application to Participate in the Electronic Filing Program, leaving the EFIN or ETIN field(s) blank. When you receive your EFIN or ETIN, you must notify DRS of your assigned identification number(s). You will not be accepted into the Federal/State Program until your EFIN or ETIN is on file with DRS. Any State of Connecticut returns you transmit electronically before that time will be rejected.

Mail the completed Form CT-8633 to:

State of Connecticut

Department of Revenue Services

Electronic Filing Coordinator

PO Box 2964

Hartford CT 06104-2964

Federal Publication 1345 explains the application process and requirements for federal participation. For Connecticut electronic filing purposes, the IRS definitions of the various categories of electronic filers, electronic return originator (ERO), transmitter, or software developer will apply.

An ERO’s failure to notify DRS of acceptance or rejection from the federal program will preclude the ERO from receiving acknowledgments of returns from DRS. DRS should also be notified of any revised submissions of the federal Form 8633.

Once you are accepted into the program, it is not necessary to re-apply each year. However, EROs are subject to review annually by DRS.

*Note: Electronic filing is a taxable computer and data processing service in the State of Connecticut. Therefore, if you charge a separate fee for the electronic filing of a return, you must register with the Connecticut Department of Revenue Services and charge the appropriate sales tax.


III.  ACCEPTANCE PROCESS

To be accepted into the program by DRS, the applicant must:

  • be accepted into the electronic filing program for federal purposes;
  • have timely and accurately filed all applicable State of Connecticut personal and business tax returns;
  • have no current tax delinquency with DRS (although DRS may conditionally accept applicants with outstanding tax liabilities if they file or pay the taxes in question before filing electronic returns); and
  • not have been suspended or rejected from the program in a prior year; Suspension or rejection is permanent until corrective action is taken and reinstatement is approved by the IRS and DRS.

EFIN and ETIN

The Internal Revenue Service Center assigns the EFIN and ETIN. The DRS uses those same numbers in the Federal/State Electronic Filing Program.

State of Connecticut Data Test

All participants are required to follow the IRS testing procedures for acceptance into the program.

Only software developers are required to test their software using Connecticut data.

Instructions for software developers can be found in federal Publication 1345, and in the Connecticut publication entitled Information for Software Developers.

To obtain federal publications:

To obtain Connecticut publications:

Internal Revenue Service

State of Connecticut

Electronic Filing Coordinator

Department of Revenue Services

135 High Street Stop 115

Electronic Filing Coordinator

Hartford CT 06103

PO Box 2964

 

Hartford CT 06104-2964

After the IRS accepts a software developer’s test returns, DRS retrieves the state data for testing. All participating software developers are provided with test material and instructions to perform the Connecticut testing.

The deadline for the initial testing of Connecticut returns in the Federal/State Electronic Filing Program is January 8, 1999.

DRS informs all applicants in writing regarding their acceptance into the Federal/State Electronic Filing Program.

Monitoring and Suspension of Electronic Filers

DRS monitors participants in the program to make sure Forms CT-8453, Income Tax Declaration for Electronic Filing by Individuals, are filed in a timely and complete manner. DRS also monitors the quality of the electronic transmissions and investigates complaints that involve the electronic filing participant.

The following are reasons for suspension from the program:

  • Continued failure to timely file the signature documents (Form CT-8453);
  • Continued submission of Form CT-8453 prior to acknowledgment of the federal return by the IRS;
  • Continued use of unapproved software;
  • Continued rejection of transmitted returns;
  • Other facts or conduct of a disreputable nature that would reflect adversely on the program; or
  • Purposeful submission of fraudulent returns.

Every attempt is made by DRS to assist participants in resolving problems. Repeat offenders may be suspended from the program.

Any returns suspected to be fraudulent should be referred to the Connecticut DRS Collection & Enforcement Division at 860-566-4914.

Advertising Guidelines

Advertisements, whether in the form of signs, newspaper advertisements, radio or television commercials, should not imply any special relationship with DRS.

The use of improper advertising is grounds for suspension from the program.

Acceptance into the Electronic Filing Program by DRS does not imply endorsement by DRS of the quality of the services provided by the electronic filer.


IV.  CONNECTICUT PORTION OF THE ELECTRONIC RETURN

The Connecticut portion of an electronic return consists of electronically transmitted data as well as supporting paper documents. An electronic return contains:

  • Data transmitted to the IRS Service Center electronically; and
  • Paper documents (filed with DRS at a later date) that contain information that cannot be electronically transmitted, such as the taxpayer signature document, Form CT-8453, Income Tax Declaration for Electronic Filing by Individuals.

Electronic Connecticut Return

The only returns that DRS accepts electronically are 1998 Form CT-1040, Connecticut Resident Income Tax Return, and Form CT-1040EZ, Connecticut EZ Resident Income Tax Return. For information regarding which federal returns may be filed electronically, see federal Publication 1345.

Non-Electronic Connecticut Return

In addition to the electronic portion of the return, DRS requires a completed Form CT-8453. All other documents that make up the non-electronic portion of the return should be attached to Form CT-8453.

These forms should be attached to the front of Form CT-8453:

The state copy of Forms W-2, W-2G, 1099, CT-4852, and CT-594.

These forms should be attached to the back of Form CT-8453:

  • Income tax return(s) filed with other qualifying jurisdiction(s), where credit is taken for income taxes paid to other jurisdiction(s). If credit is claimed for income taxes paid to more than two other qualifying jurisdictions, additional copies of Schedule 2, Form CT-1040 must be completed and attached to Form CT-8453.
  • Individual Use Tax Worksheet, if required.
  • Other informational documents not covered above or that are voluntarily being included with the return by the taxpayer as supporting material.
  • You must mail the corresponding forms to DRS within 24 hours of the State of Connecticut acknowledgment. These forms should be addressed as follows:
 
If delivered by the U.S. Postal Service:

If delivered other than by the U.S. Postal Service:

State of Connecticut State of Connecticut
Department of Revenue Services Department of Revenue Services
Electronic Filing Section Joseph Gugliemino, Processing
PO Box 2964 25 Sigourney Street
Hartford CT 06104-2964 Hartford CT 06106

The ERO must provide to the taxpayer a copy of the signed Form CT-8453, Income Tax Declaration for Electronic Filing by Individuals, accompanying documents, and a facsimile (either copy or computer-generated printout) of the 1998 Form CT-1040 or Form CT-1040EZ. If the return shows a balance due, the preparer must also provide the taxpayer with a computer generated CT-1040V, 1998 Connecticut Electronic Filing Payment Voucher. The preparer should advise the taxpayer:

  • to retain copies of all materials; and
  • that if an amendment of the return is necessary, it must be filed on paper with DRS.
  • Upon request, the ERO must provide the taxpayer with the Declaration Control Number (DCN) and the date the electronic portion of the tax return was acknowledged as accepted by the IRS.

The ERO must retain a copy of materials until the end of the calendar year in which the electronic return was filed.


V.  EXCLUSIONS FROM ELECTRONIC FILING

Publication 1345 lists returns that are excluded from federal electronic filing for the 1998 taxable year. In addition, the following documents and forms are excluded from Connecticut electronic filing:

  • Form CT-1040X, Amended Connecticut Income Tax Return For Individuals;
  • Prior year returns – any return not for the 1998 taxable year;
  • State returns, after the federal return has been accepted electronically;
  • Non-calendar year returns;
  • Form CT-1040 NR/PY, Nonresident or Part-Year Resident Income Tax Return;
  • Returns on which the filing status on the state return does not match the filing status on the federal return;
  • Returns on which the federal Adjusted Gross Income (AGI) reported on the state return does not match the AGI reported on the federal return;
  • Taxpayers subject to federal alternative minimum tax (federal Form 6251);
  • Returns accompanied by Form CT-8379, Nonobligated Spouse Claim.

VI. TRANSMITTING THE CONNECTICUT ELECTRONIC RETURN

Because the Connecticut electronic return is transmitted jointly with the federal return, the transmitter must follow all electronic transmitting procedures, communications requirements, and technical specifications required by the Internal Revenue Service, as defined in Publication 1345.

Participants in the Federal/State Electronic Filing Program should confirm with their software developer or direct transmitters that the software has been programmed to process and transmit the state data jointly with the federal data to the IRS Service Center.

Reject Codes Received from the IRS Service Center

If a federal return is rejected because of errors, the accompanying state return is also rejected. If a state tax return is rejected due to errors identified by the IRS, the federal return is also rejected. Federal Publication 1345, Handbook for Electronic Filers of Individual Income Tax Returns, specifies that taxpayer returns may be rejected due to errors on the state records and, consequently, the associated federal returns may be delayed. If the state return is in error and cannot be corrected, the filer has the option of re-transmitting the federal return data and filing the state return by mail. A state return cannot be filed electronically without the federal return.

Repeated rejection of transmissions could cause the IRS or DRS to rescind the electronic filing privileges of an electronic filer.


VII. CONNECTICUT ACKNOWLEDGMENT OF
ELECTRONIC RETURNS

Purpose of Connecticut Acknowledgment

The Connecticut acknowledgment system is designed to inform the ERO that the Connecticut return data has been retrieved and is being processed by DRS. The acknowledgment is not an indicator that the return has been accepted on the DRS Income Tax Return Processing System.

Acknowledgment System

The ERO is responsible if the DRS acknowledgement is a rejection (Page 16). DRS will provide acknowledgments of receipt of the return data to the transmitter via a teleprocessing network provided by the Centralized State Acknowledgment System (StAck). Each transmitter will establish an account with the network service for an electronic mailbox through which information is downloaded to the transmitter's system. Form CT-8453, Income Tax Declaration for Electronic Filing by Individuals (signature document) can be mailed to DRS upon receipt of an electronic acceptance from the IRS. If you (ERO) have not mailed Form CT-8453 upon acceptance by the IRS, you must mail the corresponding forms for all accepted returns to DRS within 24 hours of the State of Connecticut acknowledgment.

The returns received are listed by the batch and serial number of the IRS Declaration Control Number, ETIN, EFIN, and the taxpayer's Social Security Number.

The Connecticut acknowledgment file should be available to the transmitter within two working days from the time the transmitter receives the federal acknowledgment from the IRS.

Transmitters who transmit for the ERO must notify the ERO at the time of receipt of the Connecticut acknowledgment.

Returns Received with Errors at the Connecticut Department of Revenue Services

All returns are processed even though errors may exist on the Connecticut returns when they enter the tax processing cycle at DRS. The errors may be caused by a taxpayer submitting a paper return as well as filing electronically; by incorrect reporting of estimated payments; or by debt offsets of refunds. These errors are all managed through regular error resolution methods. If the errors require re-submission of the Connecticut tax return or the submission of an amended tax return, the return must be filed using paper forms.


VIII. REJECT CODES

The following information identifies the reject codes on the state acknowledgment of state returns.

Error codes associated with Federal/State Electronic Filing can be found in federal Publication 1345.

Errors Specific to the Connecticut Return

Codes specific to errors found in the state component of the electronic return are shown in the box at the right.

001 Invalid Form or Format
002 N/A
003 Not Current Taxable Year
004 Duplicate Return
005 Non-Calendar Year Return
006 N/A
007 N/A
008 N/A
009 N/A
010 N/A
011 N/A
012 Subject to Alternative Minimum Tax
013 N/A
014 Invalid Processing Year (DCN Year)
015 Schedule 2 (line 49A) Invalid Jurisdiction Code
016 Schedule 2 (line 49B) Invalid Jurisdiction Code
017 Invalid Transmitter ID (ETIN)
018 Invalid Filer ID (EFIN)
019 Unauthorized Software/Version


IX. Form CT-8453

Form CT-8453, Income Tax Declaration for Electronic Filing by Individuals, is used to verify the information on an electronically transmitted Form CT-1040 or CT-1040EZ, to provide the taxpayer's consent to directly deposit any overpayment, and to authorize the electronic return originator to transmit via a third party transmitter. Form CT-8453 is included in the appendix of this publication. The ERO should complete all sections of Form CT-8453, and attach supporting documents as specified in the section entitled Connecticut Section of the Electronic Return.

IRS DCN

Enter the Federal Declaration Control Number (DCN) in the appropriate boxes at the top right hand portion of the return. A complete DCN must be present on every Form CT-8453.

Mailing Label

If the taxpayer receives a mailing label from DRS, attach the label to the name and address portion of Form CT-8453. Any necessary changes should be made on the label.

Part I - Tax Return Information

Enter the necessary information from Forms CT-1040 and CT-1040EZ. Use only whole dollar amounts. The ERO must provide the taxpayer with a computer-generated payment voucher, Form CT-1040V, if the return shows a balance due. (See Page 14 for more information on Balance Due returns.)

Part II - Direct Deposit of Refund (Optional)

Enter information here about the taxpayer's account where the direct deposit refund will be sent. The ERO is required to verify account information. See the back of Form CT-8453 for account verification requirements.

If the taxpayer wants the refund directly deposited, be sure the corresponding box for Line 9, Part III is checked.

Note: See Page 13 for more information about refunds.

Part III - Declaration of Taxpayer

All filers must check a box on Line 9. After the return is prepared and before the return is transmitted electronically, the taxpayer (and spouse, if joint return) must verify the information on the return and sign and date Form CT-8453. The ERO must provide the taxpayer with a copy of the return. A taxpayer may not sign a blank Form CT-8453. A blank Form CT-8453 is the same as a blank tax return. EROs are prohibited from allowing taxpayers to sign a blank tax return.

Part IV - Declaration and Signature of ERO and Paid Preparer

The ERO and paid preparer must sign Form CT-8453, Income Tax Declaration for Electronic Filing by Individuals, and provide the requested business information in Part IV.

If the paid preparer is also the ERO, the preparer's signature and business information are needed only in the ERO section. Check the box for paid preparer.

Attachments to Form CT-8453

The state copy of Forms W-2, W-2G, 1099, CT-4852, and CT-594 reflecting Connecticut tax withheld must be attached to Form CT-8453.

  • Any income tax return(s) filed with other qualifying jurisdiction(s), where credit is taken for income taxes paid to other jurisdiction(s) must also be attached. The Individual Use Tax Worksheet, if required, must be included.
  • Other informational documents not covered above and supporting material voluntarily included by the taxpayer should be attached.
  • For additional details, see Non-Electronic Connecticut Return on.

Processing and Mailing Form CT-8453

The ERO must send the completed Form CT-8453 with all necessary attachments within 24 hours of receipt of the Connecticut acknowledgment by either regular or overnight mail (method of delivery is optional) to:

State of Connecticut

If the ERO uses a carrier other than the U.S. Postal Service, forms should be sent to:

Department of Revenue Services State of Connecticut
Electronic Filing Section Department of Revenue Services
PO Box 2964 Joseph Gugliemino, Processing

Hartford CT 06104-2964

25 Sigourney Street
 

Hartford CT 06106

Corrections to Form CT-8453

If the ERO makes changes to the electronic return after the taxpayer has signed Form CT-8453, but before the data is transmitted, the ERO must have the taxpayer complete a corrected Form CT-8453 under the following conditions:

1. Federal Adjusted Gross Income changes by more than $100; or

2. State refund changes by more than $7.

Non-substantive changes are permissible on the Form CT-8453 provided the ERO or the person making the correction initials the change.


X. REFUNDS

Taxpayers may elect to have their refund directly deposited by completing Part II of the Form CT-8453, Income Tax Declaration for Electronic Filing by Individuals. If the direct deposit option is not chosen, the refund check is mailed to the taxpayer.

Taxpayers may choose to have all or part of their refund payment applied to their 1999 estimated tax, or to donate all or part of it to funds designated on the return.

Direct Deposit

To be eligible for direct deposit, taxpayers must provide proof of account ownership to their ERO. Acceptable proof of account ownership is a check, form, report, or other statement generated by the financial institution that has the taxpayer’s name, RTN of the financial institution and the taxpayer’s account number preprinted on it. A deposit slip should not be used to verify the RTN and the account number because it can contain internal routing numbers that are not part of the RTN.

For accounts that are payable through a financial institution other than the one at which the account is located, the taxpayer must provide a document, such as an account statement or account identification card, showing the RTN of the bank or institution where the account is located.

If there is any doubt about the correct RTN, the taxpayer should contact the financial institution and ask for the correct RTN for direct deposit.

Some financial institutions may not accept direct deposits into accounts that are payable through another bank or financial institution, including credit unions.

The account designated to receive the direct deposit must be in the taxpayer’s name. If the filing status on the return is married filing jointly, the account can be in either or both spouses’ names. If the filing status is married filing separately, the account can be in the taxpayer’s name, or it can be a joint account in both spouses’ names.

CAUTION: The account cannot include the name of any other person except as noted above.

Some financial institutions do not permit the deposit of a joint refund into an individual account. DRS is not responsible when a financial institution refuses a direct deposit for this reason.

If a refund cannot be directly deposited into an account, DRS will issue a check.

DRS does not encourage the use of refund anticipation loans, which are sometimes offered by tax preparers, because many state refunds are "offset" to satisfy obligations owed to the State or another qualifying entity.


XI.  BALANCE DUE

Taxpayers who owe additional Connecticut income tax for 1998 may pay the balance due either at the time of the electronic filing or at a later date.

The preparer must provide the taxpayer with a computer-generated CT-1040V (payment voucher). The taxpayer then must be advised that the payment is due on or before April 15, 1999. Payment is considered timely if it is received by this date or if the date shown by the U.S. Post Office cancellation mark is on or before this date. Payments received after this date are late and are subject to penalty and interest.


XII.  ACKNOWLEDGMENTS

The only way you will know whether DRS accepted your returns is to receive a State of Connecticut acknowledgment. The ERO must be able to receive acknowledgments from DRS. In 1999, all acknowledgments will be made through the Centralized State Acknowledgment System (StAck). If you are planning to transmit Connecticut returns to the IRS and your software does not provide you with State of Connecticut acknowledgment records, you must subscribe to StAck. You should be aware that there will be a nominal fee charged by the service provider for use of StAck.

If you had previously registered and used the TaxConnect Acknowledgment System that was maintained by EDS, you will most likely be required to register with the new service provider. You should refer to your software instructions for additional information regarding your responsibilities for accessing and retrieving state acknowledgments.

You can call the StAck Help Desk at 828-349-5750 to request an application. You may also register with the StAck through http://www.ct.gov/ack.net.


XIII.  FRAUD AWARENESS

You can assist DRS in identifying potentially fraudulent returns before they are transmitted. If you suspect that false information is being submitted to you for electronic filing, please call the Special Investigations Section of the DRS Collection & Enforcement Division at 860-566-4914.


XIV.  RESPONSIBILITIES OF ELECTRONIC RETURN ORIGINATORS AND TRANSMITTERS

Electronic return originators and transmitters must abide by the terms set forth in the Connecticut Federal/State Electronic Filing Handbook for 1998 and must maintain a high degree of integrity, compliance and accuracy to continue to participate in the Federal/State Electronic Filing Program. EROs and transmitters must also comply with the following requirements.

Accuracy

EROs must verify the accuracy of the name, address, and Social Security Number of all taxpayers.

Compliance

EROs must comply with the requirements and specifications set forth in the IRS Publications 1345, 1346, 1347, 1683 and IP 94(8.4), Connecticut Federal/State Electronic Filing Handbook.

Timeliness of Filing

EROs must ensure that electronic returns are filed in a timely manner. The date of the IRS acknowledgment will be considered the filing date for a Connecticut return transmitted electronically. Further, EROs should confirm acknowledgment of the return by DRS before considering the state portion received.

Deadline for Filing

DRS accepts electronically filed Connecticut returns submitted for transmission to the Internal Revenue Service Center through October 15, 1999. Connecticut returns submitted after October 15, 1999, must be filed as paper documents. To avoid a penalty, a taxpayer who wishes to file a return electronically after April 15, 1999, must file Form CT-1040 EXT, Application for Extension of Time to File Income Tax Return for Individuals, on or before April 15, 1999.

Form CT-1040EXT only extends the time to file a final return; it does not extend the time to pay income tax or individual use tax. Penalty and interest is assessed on any tax not paid by the original due date.

Changes on the Returns

Electronically filed returns may not be changed once submitted. If the transmitter or taxpayer wishes to make any changes after the return has been accepted, the taxpayer must file a 1998 Form CT-1040X, Amended Income Tax Return for Individuals. Form CT-1040X may only be filed as a paper return.

Status of Connecticut Returns

DRS acknowledges receipt of the state data from the IRS through an electronic bulletin board system provided by the Centralized State Acknowledgment System (StAck). If your software developer retrieves the state acknowledgment for you, a separate account with StAck is not necessary.

Transmitters are encouraged to make regular inquiries on the electronic bulletin board concerning the status of transmitted returns. Transmitters are required to notify their EROs of the acceptance of returns within five business days after obtaining the acknowledgment.

If the Connecticut acknowledgment record indicates acceptance, the electronic return has been received and will be processed. The taxpayer should be advised to wait at least two weeks from the date of acknowledgment before inquiring about his or her tax return. To check the status of a refund check, taxpayers may call CONN-TAX, the DRS information line. (See Page 17) The Electronic Filing Help Desk telephone line is reserved for use by business entities that were accepted into the electronic filing program.

DRS will contact the ERO about any accepted returns in which errors are subsequently detected.

How to Handle a Rejected Return

If the electronically filed Connecticut return is rejected, the ERO must submit a paper tax return to DRS. Staple the signed Form CT-8453 to the back of a printed copy of the return and staple the W-2 forms and other attachments to the front of the return. The DCN should be written clearly at the top of the return using red ink.

Mail all materials to:

State of Connecticut
Department of Revenue Services
PO Box 2964
Hartford CT 06104-2964

The taxpayer is not required to sign the printed copy of Form CT-1040 or CT-1040EZ if all appropriate signatures are included on the signature document. DRS will process properly submitted returns on a priority basis.

The ERO is responsible for notifying the taxpayer that the return was filed with DRS on paper.


XV.  DELAYS AND PROBLEMS

DRS does not anticipate problems with the Federal/State Electronic Filing Program. However, should problems occur, DRS may delay the direct deposit of a refund or the mailing of a refund check by as much as two weeks. Incorrect reporting of estimated payments, refund offsets or unpaid back taxes may affect the processing of a taxpayer's refund.

Taxpayers should verify acknowledgment of their Connecticut return with their practitioner or transmitter.

A taxpayer should not be given the telephone number for the Electronic Filing Help Desk. This telephone line is reserved for use by business entities that have been accepted into the electronic filing program. To check the status of a refund, taxpayers may call CONN-TAX; the DRS automated telephone system. (See Page 17)


XVI.  CONN-TAX

If you have a touch-tone phone, you can obtain important income tax information 24 hours a day from CONN-TAX, the Department’s information line. Call 860-297-5962 (anywhere) or 1-800-382-9463 (in-state), press "1" to be connected to "Income Tax Information Menu," then press "2" to select "Recorded Income Tax Information." For refund information, be prepared to provide your social security number(s) and the exact amount of the refund you requested (dollars and cents). For other income tax information, enter the three digit number beside the topic of your choice.

GENERAL INCOME TAX INFORMATION

101 Important income tax changes for 1998
102 How to choose the correct form
103 Where to get forms and assistance
104 Requesting a filing extension
105 Filing a decedent’s return
106 Filing an error-free return
107 Amending a Connecticut return
108 Getting a copy of a previously filed Return
109 Offsets of state income tax refunds
110 Deducting Connecticut income tax when completing your federal income tax return

INCOME TAX FILING REQUIREMENTS, RESIDENCY AND FILING STATUS

201 Who must file a Connecticut return?
202 What is gross income?
203 Who is a resident, nonresident or part-year resident?
204 What is Connecticut source income of a nonresident?
205 Members of the armed forces
206 Student’s filing requirements
207 Dependent children's filing requirements
208 What is your filing status?
209 Title 19 recipients

CONNECTICUT USE TAX, GIFT TAX AND OTHER INCOME TAX RETURNS

301 Individual use tax
302 Gift tax
303 Income tax on trusts and estates
304 S corporation information and composite income tax return
305 Partnership income tax return
306 Group return for shareholders, partners and beneficiaries

FORM CT-1040 OR FORM CT-1040NR/PY

401 Tax status of United States government obligations
402 Tax status of state or local obligations
403 Residents and part-year residents who paid income tax to another jurisdiction
404 Deferred compensation
405 Pension income, social security and individual retirement accounts
406 Modifications to federal adjusted gross income
407 Connecticut alternative minimum tax
408 Property tax credit
409 Questions about a state tax refund or a Connecticut tax rebate

ESTIMATED TAX INFORMATION

501 Who must estimate?
502 Withholding instead of making estimated payments
503 Estimated income tax form
504 When to file and how much to pay
505 Annualization of income
506 Interest on underpayments
507 Farmers and fishermen

TELEFILE INFORMATION

601 Who is eligible to telefile?
602 What do I need to do before making the call?
603 Completing the Telefile Worksheet
604 Tips for successful telefiling
605 What if I make a mistake while telefiling?


XVII.  ELECTRONIC FILING HELP DESK

For business participants in ELF Program only:

Call 860-297-5979 or Fax 860-297-4757 with questions related to:

  • failure to receive acknowledgment records associated with electronically filed state returns;
  • problems associated with electronic filing software that require DRS assistance;
  • complaints related to false advertising; or
  • applications.

Call 860-297-4713 or Fax 860-297-4757 with questions related to processing of Form CT-8453.


XVIII. APPENDIX A
FORMS AND INSTRUCTIONS

  • Form CT-8633, Application to Participate in the Individual Income Tax Electronic Filing Program
  • Form CT-8453, Income Tax Declaration for Electronic Filing by Individuals
  • CT-1040V, 1998 Connecticut ELF Payment Voucher

IP 94(8.4)
Income tax
Issued: 10/5/98