Connecticut Tax Relief Information
You may receive a Note of Intent to Offset if you have a delinquent tax bill and are receiving a tax refund. At this point, unless you fully pay or request a review of your liability, the refund will be applied to your delinquent tax bill.
You may be able to pay your tax liability in installments if you cannot pay the initial tax in full. In order to qualify, you must meet the following criteria:
- You cannot be in a collection status with the DRS
- You have filed all returns
- You do not owe more than $10,000
- Your payment plan only lasts up to 12 months
If you are approved, you will also need to comply with whatever terms and conditions are given to you by the State.
Penalties and Interest
Should you fail to fully pay your tax bill or file your returns in time, you will likely be subject to additions to your total amount owed. These penalties and interests vary by tax type and circumstance. While you may get penalties waived if you can prove reasonable cause for your delinquency with evidence and appropriate documentation, interest cannot be waived.
The State Department of Revenue Services is charged with ensuring the timely payment of tax and tax returns. They will notify you of their intent to take enforced action prior to doing so. If you resolve your liability promptly, no action will come.
Priority One: Stopping Aggressive Enforced Collections
One means of enforced action that the State may take to resolve delinquency is a levy on your bank account. The State will issue a warrant to your bank and take up to the amount stated on the warrant directly from your accounts.
If you do not pay or make arrangements to pay your liability, the State may attach your wages to a warrant. This will mean garnishment of your wages and a reduction in your disposable income as a means of paying your liability over time.
Offers in Compromise
Assuming proper qualifications, you may be able to arrange an offer in compromise with the State. This requires honest doubt regarding either your own liability or the collectability of your owed tax and any associated penalties.
If you complete the appropriate documentation, you may have a qualified representative stand-in for you before the State.