Connecticut State Department of Revenue Services

Walk-in services at all DRS branch office locations remain suspended. Email DRS at drs@po.state.ct.us. Email the Priority One Taxpayer Assistance Program: DRSPriorityOne_CollectionsAssist@po.state.ct.us. Please check our Frequently Asked Questions page.

LSN 90-1

Special Notice Concerning Corporation Business Tax

Effective for the Installments of Estimated Corporation Business Tax due on or after May 15, 1990, the Department of Revenue Services will not credit an overpayment of tax liability for a preceding tax year against the current estimated tax liability unless a completed tax return (and not a tentative tax return) disclosing the overpayment has been filed. Pursuant to Sec. 12-242g of the Connecticut General Statutes, an overpayment cannot be determined to exist until a completed return is filed.

This policy will not affect the payment of the Installment of Estimated Tax due on March 15, 1990 or April 15, 1990, provided a timely Declaration of Estimated Taxes was filed. However, only overpayments that have been established by the filing of a completed return may be credited against the payment of Installments of Estimated Tax due on or after May 15, 1990.

Example 1: A calendar year taxpayer has an estimated tax liability for 1990 equaling $10,000. The taxpayer has filed a tentative tax return but has not yet filed a completed tax return for 1989. The taxpayer has filed a Declaration of Estimated Tax on March 15, 1990, paying $1000 and crediting an overpayment for 1989 of $2000 against the Installment of Estimated Tax due on March 15, 1990. If the taxpayer has not filed a completed tax return for 1989 on or before June 15, 1990, the taxpayer must pay a Second Installment on June 15, 1990 equaling $5000 (which together with the prior payment of $1000 will equal 60% of the $10,000 estimated tax).

Example 2: A taxpayer with a fiscal year ending in February has an estimated tax liability for the fiscal year ending February 1991 equaling $10,000. The taxpayer has filed a tentative tax return but has not yet filed a completed tax return for the fiscal year ending February 1990. The taxpayer must file a Declaration of Estimated Tax on May 15, 1990, and pay a First Installment equaling $3000 (30% of the $10,000 estimated tax). A credit for an overpayment for the fiscal year ending February 1990 may not be taken unless a completed return for that year has been filed.

Interest and penalties will be imposed on an underpayment of the current estimated tax liability if a taxpayer attempts to credit an overpayment not disclosed by the filing of a completed tax return against an Installment of Estimated Tax due on or after May 15, 1990.

LSN 90-1 (New 4/90)