Taxpayer Mailing: 2018 Pass-Through Entity Tax
The Connecticut Department of Revenue Services (DRS) is mailing letters to pass-through entities (PEs) that have not paid the full amount of their 2018 Pass-Through Entity Tax (PE Tax). This letter is to remind these PEs that if they pay the full amount of their 2018 PE Tax within one year of the original due date, DRS will waive any penalty and interest associated with their 2018 liability in accordance with recently enacted legislation.
For calendar year filers, one year from the original due date is March 15, 2020. If a PE does not pay the full amount of its 2018 PE Tax within one year of the original due date, it will be required to pay penalty and interest, which will accrue from the original due date of the return.
Individuals, trusts and estates who are members of a PE and who were affected by the enactment of the PE Tax should review the instructions to Form CT-CWPI, Request for Waiver of 2018 Penalty and Interest Due to the Enactment of the Pass-Through Entity Tax (Individuals, Trusts and Estates Only), to determine if they are eligible for a waiver of penalties and interest imposed on their 2018 tax liabilities.