Sec. 12-686. Payment of taxes by electronic funds transfer. When required.
Sec. 12-686. Payment of taxes by electronic funds transfer. When required.
(a)(1) Except as otherwise provided in subsection (b) of this section, the commissioner
may require every person who files a tax return for any tax on a monthly or quarterly
basis to pay such tax during the twelve-month period following a determination of
liability under this subdivision by one of the means of electronic funds transfer approved
by the department if the commissioner determines that such person's liability for such
tax was more than ten thousand dollars for the twelve-month period ending on the June
thirtieth immediately preceding the monthly or quarterly period with respect to which
the requirement to pay tax by electronic funds transfer is established. The commissioner,
in determining whether tax liability is more than ten thousand dollars, shall base such
determination on the taxes reported to be due on the tax returns of such person related
to the period under examination. If any tax return or returns of such person for such period
have not been filed, the commissioner may base such determination on any information
available to him.
(2) Except as otherwise provided in subsection (b) of this section, the commissioner
may require every person, other than a person described in subdivision (3) of this subsection, who files a tax return for any tax on an annual basis to pay such tax, or any installment thereof, during the twelve-month period following a determination of liability
under this subdivision by one of the means of electronic funds transfer approved by the
department if the commissioner determines that such person's liability for such tax was
more than ten thousand dollars for the year immediately preceding the year with respect
to which the requirement to pay tax by electronic funds transfer is established. The
commissioner, in determining whether tax liability is more than ten thousand dollars,
may base the determination on the estimated tax, if any, paid for the immediately preceding year, provided, if the tax return for such immediately preceding year has been filed,
the commissioner shall base the determination on the taxes reported to be due on such
tax return. If any tax return of such person for such period has not been filed or estimated
tax has not been paid by such person for such period, the commissioner may base such
determination on any information available to him.
(3) Except as otherwise provided in subsection (b) of this section, the commissioner
may require every employer who is deducting and withholding Connecticut income
tax from employee wages to pay such tax during the twelve-month period following a
determination of liability under this subdivision, by one of the means of electronic funds
transfer approved by the department if the commissioner determines that the amount of
Connecticut income tax deducted and withheld from employee wages by such employer
was more than ten thousand dollars for the twelve-month period ending on the June
thirtieth immediately preceding the quarterly period with respect to which the requirement to pay over tax by electronic funds transfer is established. The commissioner, in
determining whether tax liability is more than ten thousand dollars, shall base such
determination on the taxes reported to be due on the quarterly withholding tax returns
of such employer related to the period under examination. If any such tax return of such
person for such period has not been filed, the commissioner may base such determination
on any information available to him.
(b) Notwithstanding any provision of subsection (a) of this section: (1) No person
shall be required to pay any tax by electronic funds transfer until the department has
given notice to such person of such requirement; and (2) no person required to pay any
tax for any period by electronic funds transfer shall cease such method of payment until
notified by the department that such method of payment is no longer required. The
department shall give notice to such person that such method of payment is no longer
required as soon as practicable after such determination is made.
(May Sp. Sess. P.A. 92-17, S. 36, 59; P.A. 94-6, S. 2, 4; P.A. 96-221, S. 9, 10, 25; P.A. 03-225, S. 17, 18.)
History: May Sp. Sess. P.A. 92-17, S. 36 effective June 19, 1992, and applicable to any tax payments or estimated tax
payments due on or after January 1, 1993; P.A. 94-6 added Subsec. (a)(3) re determination of employer's responsibility
to pay over tax by electronic funds transfer based on quarterly withholding tax returns, effective April 7, 1994, and applicable
to payments required to be made on or after said date; P.A. 96-221 amended Subsec. (a) to lower threshold for electronic
transfer of tax payments from $500,000 to $300,000, effective July 1, 1996, and to further lower threshold for electronic
transfer of tax payments from $300,000 to $100,000, effective July 1, 1997; P.A. 03-225 amended Subsec. (a) to lower
the threshold liability for filing under this section from $100,000 to $50,000, effective July 1, 2003, and applicable to
payments required to be made on or after that date, and to further lower the threshold liability from $50,000 to $10,000,
effective July 1, 2004, and applicable to payments required to be made on or after that date.