Finance, Revenue and Bonding Committee
AN ACT CONCERNING A WAIVER FROM REQUIRED ELECTRONIC REPORTING AND PAYMENT OF TAXES
SUMMARY: This act allows the Department of Revenue Services (DRS) commissioner to waive electronic tax filing or payment requirements if he finds, based on information a waiver applicant provides, that it would be an undue hardship for a taxpayer to comply with the requirement. Tax return preparers are not eligible for the waivers.
By law, the commissioner can require taxpayers and employers to pay taxes by electronic funds transfer if they have (1) $4,000 or more in annual tax liability or (2) more than $2,000 in annual withholding tax payments. Taxpayers must also pay by electronic funds transfer if DRS regulations require them to file tax returns and other documents electronically.
Under the act, a taxpayer must file a written waiver application with the commissioner at least 30 days before the filing or payment due date. The commissioner must inform the applicant promptly of his decision, which is final and not subject to review or appeal. A hardship waiver is effective for 12 months from the date the commissioner grants it and allows a person to file a signed paper return or make payments other than by electronic funds transfer.
EFFECTIVE DATE: October 1, 2011, and applicable to tax periods starting on or after than date.
OLR Tracking: JSL: JH: PF: df