§ 12-414 — Returns and payment.

Connecticut § 12-414

• Jurisdiction: Connecticut
• Title 12: Taxation
• Ch. 219: Sales and Use Taxes

Text

(a) Due date; exceptions. The taxes imposed under this chapter are due and payable to the commissioner monthly on or before the last day of the month next succeeding each monthly period, except that (1) every person whose total tax liability for the twelve-month period ending on the preceding June thirtieth was less than one thousand dollars shall remit tax on an annual basis, (2) every person whose total tax liability for the twelve-month period ending on the preceding June thirtieth was one thousand dollars or more but less than four thousand dollars shall remit tax on a quarterly basis, and (3) every person described in subdivision (2) of subsection (e) of this section shall remit tax as prescribed by the commissioner under said subdivision (2). For purposes of this section, “quarterly” means a period of three calendar months commencing on the first day of January, April, July or October of each year or, if any seller commences business on a date other than the first day of January, April, July or October, a period beginning on the date of commencement of business and ending on March thirty-first, June thirtieth, September thirtieth or December thirty-first, respectively. (b) Return. (1) On or before the last day of the month following each monthly or quarterly period, as the case may be, or on the date or dates prescribed by the commissioner under subsection (e) of this section, a return for the preceding period shall be filed with the commissioner in such form as the commissioner may prescribe. Each person obligated to remit tax on an annual basis under subdivision (1) of subsection (a) of this section shall file an annual return on or before January thirty-first that reports sales for the previous calendar year. (2) For purposes of the sales tax, a return shall be filed by every seller. For purposes of the use tax, a return shall be filed by every retailer engaged in business in the state and by every person purchasing services or tangible personal property, the storage, acceptance, consumption or other use of which is subject to the use tax, who has not paid the use tax due a retailer required to collect the tax, except that every person making such purchases for personal use or consumption in this state, and not for use or consumption in carrying on a trade, occupation, business or profession, need file only one use tax return covering purchases during a calendar year. Such return shall be filed and the tax due thereon paid on or before the fifteenth day of the fourth month succeeding the end of the calendar year for which such return is filed. Returns shall be signed by the person required to file the return or by his or her authorized agent but need not be verified by oath, provided a return required to be filed by a corporation shall be signed by an officer of such corporation. (c) Contents of return. (1) For purposes of the sales tax, the return shall show the gross receipts of the seller during the preceding reporting period. For purposes of the use tax, (A) in case of a return filed by a retailer, the return shall show the total sales price of the services or property sold by the retailer, the storage, acceptance, consumption or other use of which became subject to the use tax during the preceding reporting period, and (B) in case of a return filed by a purchaser, the return shall show the total sales price of the service or property purchased by the purchaser, the storage, acceptance, consumption or other use of which became subject to the use tax during the preceding reporting period. The return shall also show the amount of the taxes for the period covered by the return in such manner as the commissioner may require and such other information as the commissioner deems necessary for the proper administration of this chapter. (2) The Commissioner of Revenue Services is authorized, for purposes of expediency, to permit returns to be filed in an alternative form wherein the person filing the return may elect (A) to report his or her gross receipts, including the tax reimbursement to be collected as provided for in this section, as a part of such gross receipts, or (B) to report his or her gross receipts exclusive of the tax collected in such cases where the gross receipts from sales have been segregated from tax collections. In the case of a return filed in accordance with the provisions of subparagraph (A) of this subdivision, the percentage of such tax-included gross receipts that may be considered to be the gross receipts from sales exclusive of the taxes collected thereon shall be computed by dividing the numeral one by the sum of the rate of tax provided in section 12-408 , expressed as a decimal, and the numeral one. (d) Filing return. Returns, together with the amount of the tax due thereon, shall be filed with the Commissioner of Revenue Services. (e) Return periods. Remittance of tax on weekly basis. (1) The commissioner, if he or she deems it necessary in order to ensure payment to or facilitate the collection by the state of the amount of taxes, may permit or require returns and payment of the amount of taxes for other than monthly or quarterly periods. (2) (A) For purposes of this subdivision, (i) “weekly period” means the seven-day period beginning on a Saturday and ending the following Friday, (ii) “financial institution” has the same meaning as provided in section 36a-41 , (iii) “certified service provider” means any service provider certified by the Streamlined Sales Tax Governing Board, Incorporated, and (iv) “account” means a transaction account in the form of a deposit or share account from which the depositor is permitted to make transfers or withdrawals by negotiable or transferable instrument, payment orders of withdrawal, electronic transfers or other similar mechanisms for the purpose of making payments or transfers to third parties. “Account” includes demand deposit accounts, checking accounts, negotiable order of withdrawal accounts and share draft accounts. (B) The commissioner may require any person who is delinquent, as described in section 12-7a , to remit the tax collected during a weekly period on a weekly basis. Any person who is required to remit tax for a weekly period shall remit such tax to the commissioner on or before the Wednesday next succeeding the weekly period and shall do so in the manner and method prescribed in subparagraph (C) of this subdivision. (C) The requirement to remit tax on a weekly basis shall not alter a person's obligation to file monthly or quarterly returns, as the case may be, as provided in subsection (b) of this section. To the extent that the end of one month and the beginning of the following month may fall within the same weekly period, each person required by the commissioner to remit tax under subparagraph (B) of this subdivision shall report all of the tax collected and remitted during such weekly period, regardless of the month, along with the corresponding gross receipts, on the return covering the monthly period that ended during such weekly period. Each person obligated to file monthly or quarterly returns shall file such returns electronically with the Department of Revenue Services and shall make each weekly remittance by electronic funds transfer, in accordance with the provisions of chapter 228g. (D) The commissioner shall send a written notice, in accordance with the provisions of section 12-2f , informing each person required to remit tax on a weekly basis pursuant to this subdivision of such requirement. Such notice shall include (i) a statement that such person is required to establish a separate account as set forth in subparagraph (E) of this subdivision unless such person elects to remit tax through a certified service provider as set forth in subparagraph (F) of this subdivision, (ii) a form for such person to make such election, and (iii) a list of all certified service providers and the contact information for each such provider. A person making such election shall return the form to the commissioner not later than two business days after receipt of the form. If a person does not make such election or fails to return the form in the time period prescribed under this subparagraph, such person shall establish a separate account and make deposits into such account, in accordance with the provisions of subparagraph (E) of this subdivision. The election of a certified service provider or the determination that a person is required to establish a separate account shall be irrevocable and shall remain in effect until the commissioner notifies such person that, based on evidence of twelve months of continuous compliance, such person is no longer subject to the requirements of this subsection, except that the commissioner may provide such notice prior to the end of such period of compliance. The commissioner may authorize a certified service provider to retain a portion of each amount of sales tax remitted by such certified service provider on behalf of a person pursuant to this subparagraph, provided such retained portion shall not exceed the actual cost charged by the certified service provider to such person for the services provided pursuant to this subparagraph. (E) (i) Each person who elects or is otherwise required to establish an account under subparagraph (D) of this subdivision shall, not later than thirty days after receiving the notice under said subparagraph, establish such account with a financial institution. Such account shall be separate from any other account of such person and shall be established under the designation, “(name of person required to establish such account), Trustee, Special Fund in Trust for the State of Connecticut, Department of Revenue Services, Under Section 12-408 of the Connecticut General Statutes”. Such person shall (I) provide to the commissioner, upon request, the name of the financial institution where such account was established, the account number of such account and any other account-related information that the commissioner may require, and (II) provide, as trustee, written consent to the financial institution for the disclosure of account-related information to the commissioner pursuant to this subdivision. Such written consent shall constitute authorization for the disclosure of financial records under section 36a-42 . For the purposes of this subparagraph, “account-related information” includes account balance information and information identifying the dates and amounts of debits and credits to such account, and may include such other nonpublic personal information pertaining to such account the commissioner may require. (ii) Upon the establishment of such account, such person shall deposit into such account the tax collected or received by such person, not later than two business days after such collection or receipt. The taxes deposited in such account shall constitute a fund in trust for the state of Connecticut and deemed to be the property of the state, payable only to the Department of Revenue Services, and no liens shall be placed on the taxes deposited in such account. No other funds shall be deposited into such account for any reason except for maintenance of the account. (iii) If, without the prior authorization of the commissioner, a person withdraws funds from such account for any purpose other than to remit tax due to the commissioner, such person shall be guilty of larceny, as defined in section 53a-119 . Each unauthorized withdrawal shall constitute a separate offense. (iv) The commissioner may request at any time from a financial institution account-related information pertaining to any account established pursuant to clause (i) of this subparagraph that is maintained by such institution. The commissioner shall identify, in consultation with representatives from the banking industry, acceptable methods for the provision of such account-related information. (F) If a person elects under subparagraph (D) of this subdivision to remit tax through a certified service provider, such person shall, not later than thirty days after making such election, contract with a certified service provider and begin remitting tax through such provider. Such person shall provide to the commissioner, upon request, a copy of the executed contract, a written authorization for the commissioner to contact the certified service provider regarding such person and any other information with respect to the arrangement between such person and such provider that the commissioner may require. Each certified service provider remitting tax on behalf of any person required to remit tax for a weekly period shall do so in the manner and method prescribed in subparagraph (C) of this subdivision. (G) (i) If any person who elects or is otherwise required to establish an account under subparagraph (D) of this subdivision fails to remit tax as provided in this subdivision and the commissioner determines that collection of such tax will be jeopardized by delay, the commissioner may serve notice on the financial institution where such account was established and order the payment of such tax from such account. The commissioner shall determine, in consultation with representatives from the banking industry, acceptable methods for the provision of such notice. Upon receipt of such notice, the financial institution shall remove from such account before such institution's midnight deadline, as defined in section 42a-4-104 , the available funds in such account or the amount of the tax ordered paid by the commissioner, whichever is less. Any funds so removed by the financial institution shall be paid to the commissioner not later than two business days after such midnight deadline and such payment shall be applied toward the amount of tax due to the commissioner from such person. The commissioner shall not order payment from such account of any penalty or interest that may be owed by such person in connection with such tax. Such penalty or interest may be collected by the commissioner in accordance with the provisions of section 12-35 and chapter 906. (ii) If the financial institution fails or refuses to pay to the commissioner the amount required under clause (i) of this subparagraph, the Attorney General may, upon request by the commissioner, bring an action in the superior court for the judicial district of Hartford to compel the financial institution to pay such amount. (iii) Contemporaneously with the service of notice on the financial institution, the commissioner shall provide a written notice to the person who established the account pursuant to subparagraph (E)(i) of this subdivision of such person's right to file a claim with the commissioner if such account contains funds other than such taxes that constitute the property of the state. Such notice shall be provided in person, left at the person's dwelling or usual place of business, sent by first-class mail to such person's last-known address or sent by electronic mail or facsimile machine to such person. Such person shall have ten business days after receipt of such notice to file such claim on a form prescribed by the commissioner. Failure to file a claim within the time period prescribed shall constitute a waiver of any demand against the state. (iv) Not later than ten business days after receipt of a claim filed pursuant to clause (iii) of this subparagraph, the commissioner shall determine whether such claim is valid. If the commissioner determines the claim is valid, the commissioner shall return to such person only those funds that are not the property of the state and such funds shall not be subject to offset by the state. If the commissioner determines the claim is not valid in whole or in part, the commissioner shall provide written notice of denial to such person. (v) Not later than five business days after the date of mailing of a notice of denial, such person may file with the commissioner a written protest of the denial, setting forth the grounds on which the protest is based. If a protest is filed, the commissioner shall, not later than ten business days after receipt of such protest, reconsider the denial. The commissioner shall provide written notice to such person of the commissioner's determination of reconsideration, setting forth briefly the commissioner's findings of fact and the basis for the commissioner's decision in each case decided adversely in whole or in part to such person. (vi) Any person aggrieved by a determination of the commissioner under this subsection may appeal to the superior court for the judicial district of New Britain, in accordance with the provisions of section 4-183 . Such appeal shall not constitute an appeal from the Commissioner of Revenue Services for purposes of section 4-186 . (vii) Nothing in this subdivision shall affect the rights afforded to a financial institution with respect to uncollected funds that are credited to an account established pursuant to subparagraph (E) of this subdivision, including the right to remove funds as a charge-back to recover uncollected funds. (H) (i) Any person who fails to remit tax as provided in this subdivision shall be subject to all penalties imposed under this chapter, including revocation of such person's permit. (ii) Any penalty imposed under this subdivision shall not be subject to waiver. (3) (A) Nothing in this subsection shall affect the rights afforded under chapter 219 to persons subject to the provisions of this subsection, including the ability to file a claim for refund under section 12-425 . (B) Except as otherwise provided, no action taken by the commissioner under this subsection shall constitute collection actions for purposes of section 12-35 or chapter 906. (f) Extension of time. Except for returns and payments required to be made under subdivision (2) of subsection (e) of this section, the commissioner for good cause may extend the time for making any return and paying any amount required to be paid under this chapter, if a written request therefor is filed with the commissioner together with a tentative return which must be accompanied by a payment of the tax, which shall be estimated in such tentative return, on or before the last day for filing the return. Any person to whom an extension is granted shall pay, in addition to the tax, interest at the rate of one per cent per month or fraction thereof from the date on which the tax would have been due without the extension until the date of payment.

Legislative History

(1949 Rev., S. 2098; 1951, 1953, June, 1955, S. 1170d; November, 1955, S. N147; 1957, P.A. 553, S. 4; 1961, P.A. 574, S. 5; June, 1969, P.A. 1, S. 21; June, 1971, P.A. 5, S. 108; 8, S. 8; 1972, P.A. 285, S. 5; P.A. 73-288, S. 5, 8; P.A. 74-73, S. 4, 5; P.A. 75-2, S. 4, 5; 75-213, S. 35, 53; Dec. Sp. Sess. P.A. 75-1, S. 1–4, 12; P.A. 76-322, S. 9, 27; P.A. 77-614, S. 139, 610; P.A. 80-71, S. 20, 30; 80-307, S. 17, 31; P.A. 81-399, S. 2, 3; 81-411, S. 25, 42; P.A. 82-467, S. 2, 3; P.A. 85-316, S. 1, 7; P.A. 89-251, S. 200, 203; P.A. 90-148, S. 9, 34; June Sp. Sess. P.A. 91-3, S. 119, 168; May Sp. Sess. P.A. 92-5, S. 30, 37; P.A. 93-44, S. 5, 24; 93-74, S. 32, 67; P.A. 94-9, S. 18, 41; May Sp. Sess. P.A. 94-4, S. 37, 85; P.A. 95-160, S. 64, 69; P.A. 96-139, S. 5, 13; 96-180, S. 27, 166; June 30 Sp. Sess. P.A. 03-6, S. 74; June Sp. Sess. P.A. 09-3, S. 112; P.A. 11-6, S. 127; P.A. 14-155, S. 14; June Sp. Sess. P.A. 15-5, S. 137; P.A. 17-105, S. 7; 17-147, S. 4; P.A. 22-110, S. 20.) History: 1961 act changed technical language in Subsec. (3) and changed amount of gross income considered as gross receipts from 97% to 96.6%; 1969 act amended Subsec. (3) to lower amount of gross income considered as gross receipts from 96.6% to 95.2% for period from July 1, 1969, to June 30, 1971; 1971 acts made 95.2% the permanent amount, then changed it to 93.9% as of September 1, 1971; 1972 act changed amount to 93.5%; P.A. 73-288 changed amount to 93.9%; P.A. 74-73 changed amount to 94.3%; P.A. 75-2 changed amount to 93.5%; P.A. 75-213 included references to “services” and “acceptance” in Subsecs. (2) and (3); Dec. Sp. Sess. P.A. 75-1 changed section to reflect monthly and quarterly payments, provisions for which were detailed in Subsec. (1), amended Subsec. (5) to allow commissioner to permit payments on basis other than monthly or quarterly and increased interest rate in Subsec. (6) from 0.5% to 0.75%; P.A. 76-322 increased interest rate in Subsec. (6) to 1%; P.A. 77-614 substituted commissioner of revenue services for tax commissioner, effective January 1, 1979; P.A. 80-71 changed amount of gross income which may be considered as gross receipts to 93%; P.A. 80-307 temporarily increased interest rate in Subsec. (6) to 1.25% for taxes due on or after July 1, 1980, but not later than June 30, 1981; P.A. 81-399 amended Subsec. (4) by providing that any return and payment shall be deemed to have been filed within the time required if postmarked on or before the date such return and payment are required to be filed; P.A. 81-411 continued interest applicable under Subsec. (6) when an extension of time for payment is granted at 1.25% per month, effective July 1, 1981, and applicable to taxes becoming due on or after that date; P.A. 82-467 amended Subsec. (1) by eliminating certain redundant language and changing the order of certain dates in the definition of “quarterly” for clarification; P.A. 85-316 amended Subsec. (2) so as to require that a return filed by a corporation shall be signed by an officer of such corporation; P.A. 89-251 amended Subsec. (3) with respect to a person filing a return who elects to report gross receipts including the taxes collected, changing the percentage of gross receipts considered to be from sales, exclusive of taxes, to 92.5% of gross receipts, corresponding to the 8% rate of tax; P.A. 90-148 amended Subsec. (6) to increase the rate of interest added during the period of extension from 1.25% to 1.66% per month, effective July 1, 1990, and applicable to taxes becoming due on or after that date; June Sp. Sess. P.A. 91-3 amended Subsec. (3) with respect to a person filing a return who elects to report gross receipts including the taxes collected, changing the percentage of gross receipts considered to be from sales, exclusive of taxes, to 94.3% of gross receipts, corresponding to the 6% rate of tax, effective August 22, 1991, and applicable to sales occurring on or after October 1, 1991; May Sp. Sess. P.A. 92-5 amended Subsec. (2) to change the return date from the last day of the month following the end of the calendar year to the fifteenth day of the fourth month following the end of the calendar year, effective June 19, 1992, and applicable to sales occurring on or after July 1, 1992; P.A. 93-44 added Subsec. (1)(b) re persons rendering services covered by Sec. 12-407(2)(o), effective April 23, 1993; P.A. 93-74 amended Subsec. (4) by deleting provision re time document is postmarked and filed, effective May 19, 1993, and applicable to taxable years commencing on and after January 1, 1993; P.A. 94-9 deleted Subsec. (1)(b) re quarterly filing by persons rendering services covered under Sec. 12-407(2)(o) and making payments in accordance with Sec. 19a-168b, effective April 1, 1994; May Sp. Sess. P.A. 94-4 in Subsec. (6) reduced interest rate from 1.66% to 1%, effective July 1, 1995, and applicable to taxes due and owing on or after said date; P.A. 95-160 revised effective date of May Sp. Sess. P.A. 94-4 but without affecting this section; P.A. 96-139 and 96-180 both changed return due date from last day of the month succeeding the end of a calendar year to “fifteenth day of the fourth month” succeeding end of year, effective May 29, 1996, and June 3, 1996, respectively; June 30 Sp. Sess. P.A. 03-6 amended Subsec. (1) to change the income test period for quarterly filers to the 12-month period ending the preceding June thirtieth; June Sp. Sess. P.A. 09-3 amended Subsec. (3) to change percentage of gross receipts from sales from 94.3% to 94.8%, corresponding to the 5.5% rate of tax, effective January 1, 2010 (Revisor's note: The amendments made to Subsec. (3) by Sec. 112 of June Sp. Sess. P.A. 09-3 did not take effect pursuant to Sec. 12-432c(a)); P.A. 11-6 amended Subsec. (3) by replacing 94.3% with provision re computation to determine percentage of tax-included gross receipts, effective July 1, 2011, and applicable to sales occurring on or after that date; P.A. 14-155 changed Subsec. designators from numeric to alphabetic, amended redesignated Subsec. (a) by changing tax due date from last day of month to 20th day of month, designating existing provision re tax liability of less than $4,000 as Subdiv. (1) and adding Subdiv. (2) re tax remitted under Subsec. (e)(2), amended redesignated Subsec. (b) by changing return due date from last day of month to 20th day of month and adding reference to date prescribed by commissioner, amended redesignated Subsec. (e) by designating existing provision re returns and payment other than monthly or quarterly as Subdiv. (1) and adding Subdiv. (2) re weekly remittals, amended redesignated Subsec. (f) by adding reference to exception under Subsec. (e)(2) and made technical and conforming changes; June Sp. Sess. P.A. 15-5 amended Subsec. (a) by changing tax due date from 20th day of month to last day of month and amended Subsec. (b) by changing return due date from 20th day of month to last day of month, effective October 1, 2015, and applicable to periods ending on or after December 31, 2015; P.A. 17-105 made a technical change in Subsec. (e)(1); P.A. 17-147 amended Subsec. (a) by replacing “by” with “under” re taxes imposed, adding new Subdiv. (1) re person whose tax liability was less than $1,000, redesignating existing Subdiv. (1) re person whose tax liability was less than $4,000 as new Subdiv. (2) and amending same to add “one thousand dollars or more but”, redesignating existing Subdiv. (2) re person to remit tax as prescribed by Subsec. (e)(2) as Subdiv. (3) and replacing “Quarterly” with “For purposes of this section, “quarterly””, amended Subsec. (b) by designating existing provision re filing return as Subdiv. (1) and amending same by adding provision re filing of annual return on or before January 31st, and designating existing provisions re filing of return by every seller as Subdiv. (2), amended Subsec. (c) by designating existing provision re return filed by retailer as Subdiv. (1) and designating provision re return filed by purchaser as Subdiv. (2), substantially amended Subsec. (e)(2) including by adding definitions in Subpara. (A), designating existing provisions re remittance of tax for weekly period as new Subparas. (B) and (C), amending redesignated Subpara. (C) by adding provision re weekly remittance by electronic funds transfer, redesignating existing Subpara. (B) as Subpara. (D) and amending same by deleting provisions re remittance of tax on weekly basis for period of one year and notice to contain information regarding manner and method of remittal, and adding provisions re notice, return of form and election of certified service provider, adding Subparas. (E) to (G), and redesignating existing Subpara. (C) re penalties as Subpara. (H), added Subsec. (e)(3) re rights afforded and action taken by commissioner, and made technical changes, effective January 1, 2018; P.A. 22-110 amended Subsec. (c) by redesignating existing provisions as Subdivs. (1) and (2) and making technical and conforming changes. Cited. 183 C. 117. Cited. 12 CA 417.