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2017 Survey of Connecticut Tax Law Developments

Connecticut Bar Journal

2018 Vol. 91.4

November 13, 2018

There were numerous significant Connecticut tax law developments in 2017. In the case of the Connecticut personal income tax, the angel investor tax credit was made available for investments in companies in all industries, the exemption for Social Security benefits was expanded, the property tax credit was further limited, and pension and annuity payments were made the subject of both a new limited exemption and a tax withholding requirement. The due date for the corporation business tax return was pushed back, the scheduled FAS 109 deduction arising out of the implementation of combined unitary reporting was both delayed until 2021 and extended from seven to 30 years, and two new programs for the use of stranded state research and development tax credits were created. The effective period of sales tax permits was reduced from five to two years, and new enforcement mechanisms were developed for delinquent taxpayers. In addition, there were increases in fees and miscellaneous taxes, such as the cigarette and tobacco products taxes, a lowering of the insurance premium tax and the creation of a new brownfields revitalization tax benefit program. Finally, the Connecticut Department of Revenue Services (“DRS”) was authorized to create a “Fresh Start” Program whereby certain delinquent taxpayers could apply for relief from penalties and one-half of the interest that otherwise would be due on state taxes that have not been reported or were underreported.

This Survey summarizes Connecticut tax legislation enacted, court decisions rendered and administrative guidance published by the DRS during 2017.

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Originally published in the Connecticut Bar Journal and reprinted with permission.

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