TAX DEBT RELIEF OPTIONS – Connecticut Department of Revenue Services


M&M Financial opened its doors in 2005, and we’ve been helping Connecticut taxpayers fix their back-tax problems since 2007.  We deal with the IRS and State, so you do not have to!  

Download your Taxpayer Rights HERE if you owe back-taxes to the state of Connecticut.  

Below is some information that will help you start resolving your state tax liabilities.  If you have questions and would like to talk to a licensed Tax Resolution Specialist please do not hesitate to call us at 866-487-5624.


PAYMENT PLANS TO RESOLVE CONNECTICUT BACK TAXES


The Connecticut Department of Revenue Services (DRS) is pretty easy to work with if you owe personal income tax.  Here are your options:  
  • If you owe less than $10,000 in personal income tax you can set up at 12 month payment plan online through the DRS website.  
  • If owe more than $10,000 in personal income tax, or you need longer than 12 months to pay your tax debt, you need to contact the Compliance Division directly at (860) 297-4936 to request extended terms.  
The Connecticut Department of Revenue Services (DRS) has more stringent terms for business back-tax liabilities.  Here are your options:  
  • The standard term for business back-tax installment agreement is 12 months.In certain cases your business might be allowed longer terms but you will need to contact the DRS Compliance Division directly at (860) 297-4636.  You may be required to submit business financial statements supporting your financial position requiring longer terms.  

REDUCE YOUR CONNECTICUT TAX DEBT


Offer in Compromise


Connecticut does have an Offer in Compromise (OIC) program for both individual taxpayers and operating businesses to resolve their back-tax liabilities.  Generally speaking, the OIC works better for individuals than businesses.  

If you feel you do not owe the tax, you may be able to settle the debt under the “Doubt as to Liability” option of the OIC.  If you feel you cannot afford to pay your tax debt you may be able to settle your tax liability under the “Doubt as to Collectability” option of the OIC.  

Penalty Relief


Unfortunately, the state of Connecticut is not friendly when it comes to granting penalty relief on back-tax liabilities.  You must pay the tax liability in full before the state will even consider your Penalty Waiver Request.  

The basics of submitting your Penalty Waiver Request can be found HERE.  

If you are experiencing a financial hardship due to your tax liability the CT-DRS Taxpayer Advocate Office may be able to help you.  The phone number for the CT-DRS Taxpayer Advocate Office is:  (860) 297-5603.

CONNECTICUT TAX RESOLUTION CASE EXAMPLES


The Connecticut Department of Revenue Services has some flexibility when it comes to back-tax liabilities.  Each case varies based on factors such as compliance history, type of tax owed and total amount past due.  Click below to see some case examples in your state negotiated by M&M.


page last reviewed 1/4/2018

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