Have you made any payments to the Connecticut Department of Revenue Services (DRS) this year? Did you make those payments by check?

If so, you will have to change the way you make some tax payments.

How to Pay

The DRS now requires all forms and payments for Partnerships and S Corporations to be made electronically. You can pay online using the Taxpayer Service Center. Once you log in and follow the prompts for the specific transaction you want to complete, you can pay electronically using one of the following three methods:

  1. By Electronic Funds Transfer (EFT) using the Automated Clearing House (ACH) Debit method through the Taxpayer Service Center
  2. By the ACH Credit method through your financial institution
  3. By credit card

Please note that this transaction must take place on or before midnight of the tax due date.

The Penalties

According to DRS standards, any non-electronic or missed payments will be subject to the following penalties:

  • 1st time offense – 10% penalty on the amount of the payment required to be made by electronic funds transfer (EFT), not to exceed $2500.
  • 2nd Offense – 10% penalty, not to exceed $10,000.
  • 3rd Offense and subsequent offenses – 10% penalty.

Final Reminders

Although other forms of payment, such as paying by mailed check, are not allowed for business taxes, individuals making payments for Form 1040 can still pay by mailed check. This change only affects 1065 and 1120-S taxpayers.

Additionally, should you receive a notice from the DRS regarding errors in payments, contact us upon receipt of the correspondence. We will then determine what action, if any, is necessary. It is our pleasure to help clients like you resolve their tax-related issues!