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Tropical Storm Irene Prompts Connecticut and Federal Tax Filing Extensions

September 8, 2011

Authors: Alan E. Lieberman, Louis B. Schatz, Raymond J. Casella

Following the widespread damage caused by Tropical Storm Irene, the Connecticut Department of Revenue Services ("DRS") and the Internal Revenue Service have both announced programs to provide filing extensions to Connecticut taxpayers affected by the storm.

Connecticut Relief. On September 7, 2011, the DRS announced that the due dates for all applicable estimates, extensions and returns originally due on or after August 27, 2011 and on or before October 31, 2011, have been extended to October 31, 2011. The tax types granted filing and payment extensions to October 31 are:

  • Connecticut Individual Income Tax: CT-1040 series;
  • Connecticut Corporation Business Tax: CT-1120 series;
  • Connecticut Income Tax for Trusts and Estates: CT-1041 series;
  • Connecticut Composite Income Tax: CT-1065/1120SI; and
  • Connecticut Unrelated Business Income Tax: CT-990T series

These estimates, extensions and returns will be considered timely filed if mailed and postmarked by midnight on October 31, 2011. Payments made by electronic funds transfer must be initiated by 4:30 pm on October 28, 2011 to be considered timely.

Previously, the DRS had announced a deadline of September 13, 2011 (which remains in effect) for certain filings and payments which normally should have been made between August 31, 2011 and September 13, 2011. Filing and payments of the following taxes will be considered timely if mailed and postmarked by midnight on September 13, 2011 or, if payment is by electronic funds transfer, if the payment is initiated by 4:30 pm on September 12, 2011:

  • Sales and use tax, Business use tax,
  • Room occupancy tax,
  • Admission and dues tax,
  • Alcoholic beverage tax,
  • Tourism surcharge,
  • Weekly income tax withholding, and 
  • Gift and Estate

The DRS invites taxpayers entitled to storm-related tax relief who receive a late filing notice to contact the DRS Taxpayer Service’s hotline at (860) 297-5962.

Federal Relief. On September 6, 2011, the IRS announced tax relief for affected Connecticut taxpayers. Affected taxpayers include, in part, those who reside in Connecticut, those who have businesses the principal location of which is in Connecticut, or those who have records necessary for making a filing which are stored in Connecticut.

Pursuant to the IRS’s announcement, affected taxpayers have until October 31 to file most tax returns or to make tax payments, including estimated tax payments, that have either an original or extended due date occurring or after August 27, 2011 and on or before October 31, 2011. The relief applies to individual, corporate, and estate and trust income tax returns, partnership returns, S corporation returns, and trust returns; estate, gift and generation-skipping transfer tax returns; and employment and certain excise tax returns.

For instance, corporations and businesses that previously obtained an extension until September 15 to file their 2010 returns, and individuals and businesses that received a similar extension until October 17, now have until October 31 to file. In addition, the estimated tax payment for the third quarter, normally due September 15, is now due October 31.

The postponement of time to file and pay does not apply to information returns in the W-2, 1098 or 1099 series, or to Forms 1042-S or 8027.

Although the deadline for filing employment and excise returns is extended through October 31, 2011; deposits must still be made in accordance with regular deadlines; however, the IRS will abate penalties for failure to make timely employment and excise tax deposits due on or after August 27 and on or before September 12 provided the deposits are made by September 12.

Affected taxpayers also will have the option of claiming any disaster related casualty losses on either their 2010 or 2011 return. Those amending a 2010 return to claim the disaster loss on last year’s return should put the Disaster Designation “Connecticut/Tropical Storm Irene” at the top of the return so that the IRS can expedite the processing of the refund.

If you have any questions about this alert, please contact a member of our Tax Law Practice Group.

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