Connecticut tax payment plan rules from DRS
Through myconneCT, you send requests to the Department of Revenue Services (DRS) in Connecticut. Connecticut calls this an installment agreement. You must pay the full balance within 12 months through the online option, which covers $50,000 or less.
- Payment plan cap for the web
- $50,000
- Longest payment term
- 12 months
- Interest on tax you have not paid
- 1% each month
- Penalty when payment is late
- 10% of the tax you owe
Connecticut rule for $50,000 and 12 months
The online plans Connecticut offers stay brief. As the DRS plan section explains, your balance cannot exceed $50,000 and terms must finish no later than twelve months. DRS also says the agency is not a lending institution. People who face a temporary, real money problem get extra time.
The FAQ for myconneCT sets out the portal limits as well. A plan has to last at least 2 months and no more than 12 months. Weekly payments are capped at 52 weeks. How long your plan runs also depends on the lowest installment amount allowed.
Once my account enters collections, can I still qualify for a plan?
You cannot file the online request for that. If you miss even one condition below, you are asked to talk to a DRS Revenue Agent about the account instead. Ways to reach the agency appear on the DRS contact page.
Full access to a standard account is also required for a request. Neither account managers nor third-party bulk filers may request a plan. All of the following must be true to qualify:
- Your account has not been put into collection status by DRS and a collection agency working for DRS has not put it there either.
- No warrant, bankruptcy or DRS criminal investigation applies to your account.
- All your tax returns are filed and up to date.
- The balance on your account right now is $50,000 or less.
- The plan term cannot stretch past twelve months.
How to ask for a payment plan in myconneCT
Requests go through myconneCT, the online tax portal for DRS. After DRS sets up a plan for you, pay each installment you owe from the Action Center. To request a plan, follow these steps:
- Create a username and password, then log in
- Open the Summary tab.
- Pick Request Payment Plan and complete your request.
Interest, refunds and the penalty while you pay
A plan does not stop the charges. Unpaid tax carries interest at 1% for every month, including part of a month, until full payment. The Connecticut income tax information page explains this. That interest cannot be waived. If you pay income or use tax late, a penalty of 10% of the tax due applies.
Refunds also reduce what you owe. Refunds from the IRS or Connecticut are applied by DRS to your bill, even with a payment plan. Your monthly installment leaves that refund out, so you must still pay the next installment by its due date.
DRS options when the tax goes unpaid
Connecticut law gives DRS strong powers. When tax goes unpaid 30 days past the date it was due, a tax warrant may follow. This is covered by section 12-35. This legal order to seize property carries the same force as a court execution. Real estate and other property you own can be subject to enforcement. Connecticut law also allows the following:
- Taking money others owe you, along with wages and bank accounts, when written notice comes at least 30 days before the warrant
- Putting a keeper in a business to collect the income and close the business when that serves the state.
- A civil lawsuit brought by the Attorney General
- Officer service fees are charged at twice the statutory rate and added to your debt.
Payments to DRS and the IRS at once
Connecticut tax is the only tax a DRS agreement covers. Federal tax needs its own separate IRS installment agreement, which carries separate terms and a due date. Two plans stay in place when you owe both agencies and make two payments each month, one going to each agency.
Nearby states
Do you owe DRS as well as the IRS?
Do you owe money to Connecticut DRS and to the IRS at the same time? During a free call, a licensed tax pro can match both payment plans to your actual budget.
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