Governor Rell: State Program Offers

Incentive for Paying Back Taxes

Limited-Time Elimination of Penalty

and Fifty Percent Reduction of Interest

            Governor M. Jodi Rell today announced that starting later this week, the Connecticut Department of Revenue Services (DRS) will send letters to about 75,000 taxpayers eligible for an opportunity to reduce their outstanding tax debt under the Connecticut Tax Settlement Incentive program.

            “This is a great opportunity for taxpayers to clear up their debts,” Governor Rell said. “Through this program, we can reduce a taxpayer’s outstanding interest by 50 percent and eliminate all penalties. This is an exceptional incentive for those with unresolved tax liabilities to pay now.”

            To get the reductions and to avoid potential enforcement actions, the taxpayer must pay the settlement amount due by December 15, 2009. Payment plans are not available. Virtually all taxes administered by DRS are eligible for the Settlement Program except Motor Carrier Tax and International Fuel Tax Agreement taxes.

            To qualify for the Settlement Program, the tax debt must meet each of the following criteria:

• A bill for an outstanding liability was issued by DRS on or before August 31, 2009
• The bill includes interest
• The bill is not part of an approved offer of compromise between DRS and the taxpayer

             Taxpayers who do not receive a settlement offer letter but believe they may qualify for the program should call (860) 541-4274 during business hours Monday through Friday.

            For more information on this program, visit the DRS website at www.ct.gov/DRS/CTSI.