Sec. 12-226. Correction of returns; additional tax; refunds.
Sec. 12-226. Correction of returns; additional tax; refunds. (a)(1) Any company whose income, profits or earnings are changed, adjusted or corrected for any income year by any official of the United States government, or any agency thereof, in
any respect affecting the tax imposed by this part, shall provide notice of such change,
adjustment or correction to the commissioner by filing, on or before the date that is
ninety days after the final determination of such change, adjustment or correction, or
as otherwise required by the commissioner, an amended return under this chapter, and
shall concede the accuracy of such determination or state wherein it is erroneous, and
thereafter promptly furnish to the commissioner any information, schedules, records,
documents or papers relating to such change, adjustment or correction as the commissioner requires. The time for filing such return may be extended by the commissioner
upon due cause shown. If, upon examination, the commissioner finds that the company
is liable for the payment of an additional tax, the commissioner shall, within a reasonable
time from the receipt of such return, notify the company of the amount of such additional
tax, together with interest thereon computed at the rate of one per cent per month or
fraction thereof from the date when the original tax became due and payable. Within
thirty days of the mailing of such notice, the company shall pay to the commissioner,
in cash or by check, draft or money order, drawn to the order of the Commissioner of
Revenue Services, the amount of such additional tax and interest. If, upon examination
of such return and related information, the commissioner finds that the company has
overpaid the tax due the state and has not received from or been allowed by the United
States government, or any agency thereof, a credit or a benefit as a deduction or otherwise, for or by reason of such overpayment, the State Treasurer shall pay the company,
upon order of the State Comptroller, the amount of such overpayment. If the commissioner determines that the company's claim of overpayment is not valid, either in whole
or in part, the commissioner shall mail notice to the company of the proposed disallowance of the claim in whole or in part, which notice shall set forth briefly the commissioner's findings of fact and the basis of disallowance in each case decided in whole or in
part adversely to the claimant. Sixty days after the date on which it is mailed, a notice
of proposed disallowance shall constitute a final disallowance except only for such
amounts as to which the company has filed a written protest with the commissioner, as
provided in subdivision (2) of this subsection.
(2) On or before the sixtieth day after the mailing of the proposed disallowance,
the company may file with the commissioner a written protest against the proposed
disallowance in which it sets forth the grounds on which the protest is based. If a protest
is filed, the commissioner shall reconsider the proposed disallowance and, if the company has so requested, may grant or deny the company or its authorized representatives
an oral hearing.
(3) The commissioner shall mail notice of his determination to the company, which
notice shall set forth briefly the commissioner's findings of fact and the basis of decision
in each case decided in whole or in part adversely to the company.
(4) The action of the commissioner on the company's protest shall be final upon
the expiration of one month from the date on which he mails notice of his action to the
company unless within such period the company seeks judicial review of the commissioner's determination pursuant to section 12-237.
(b) (1) Any company whose return to the Director of Internal Revenue has been
amended shall, within ninety days after having filed the amended return, make an
amended return to the commissioner. The time for filing such amended return may
be extended by the commissioner upon due cause shown. If, upon examination, the
commissioner finds that the company is liable for the payment of an additional tax, he
shall, within a reasonable time from the receipt of such amended return, notify the
company of the amount of such additional tax, together with interest thereon computed
at the rate of one per cent per month or fraction thereof from the date when the original
tax became due and payable. Within thirty days of the mailing of such notice, the company shall pay to the commissioner, in cash or by check, draft or money order, drawn
to the order of the Commissioner of Revenue Services, the amount of such additional
tax and interest. If, upon examination of such amended return and related information,
the commissioner finds that the company has overpaid the tax due the state and has not
received from or been allowed by the United States government, or any agency thereof,
a credit or a benefit, as a deduction or otherwise, for or by reason of such overpayment,
the company shall be paid by the State Treasurer, upon order of the Comptroller, the
amount of such overpayment. If the commissioner determines that the company's claim
of overpayment is not valid, either in whole or in part, he shall mail notice of the proposed
disallowance in whole or in part of the claim to the company, which notice shall set
forth briefly the commissioner's findings of fact and the basis of disallowance in each
case decided in whole or in part adversely to the claimant. Sixty days after the date on
which it is mailed, a notice of proposed disallowance shall constitute a final disallowance
except only for such amounts as to which the company has filed, as provided in subdivision (2) of this subsection, a written protest with the commissioner.
(2) On or before the sixtieth day after the mailing of the proposed disallowance,
the company may file with the commissioner a written protest against the proposed
disallowance in which it sets forth the grounds on which the protest is based. If a protest
is filed, the commissioner shall reconsider the proposed disallowance and, if the company has so requested, may grant or deny the company or its authorized representatives
an oral hearing.
(3) The commissioner shall mail notice of his determination to the company, which
notice shall set forth briefly the commissioner's findings of fact and the basis of decision
in each case decided in whole or in part adversely to the company.
(4) The action of the commissioner on the company's protest shall be final upon
the expiration of one month from the date on which he mails notice of his action to the
company unless within such period the company seeks judicial review of the commissioner's determination pursuant to section 12-237.
(1949 Rev., S. 1907; 1949, 1951, S. 1100d; 1957, P.A. 489, S. 1; 560, S. 5; 1963, P.A. 651, S. 2; February, 1965, P.A.
428; 1969, P.A. 388, S. 3; P.A. 76-322, S. 3, 27; P.A. 77-614, S. 139, 610; P.A. 80-307, S. 7, 31; P.A. 81-411, S. 15, 42;
P.A. 84-423, S. 2; P.A. 93-74, S. 61, 67; May Sp. Sess. P.A. 94-4, S. 31, 85; P.A. 95-160, S. 64, 69; P.A. 97-243, S. 53,
67; P.A. 00-174, S. 53, 83; P.A. 02-103, S. 46.)
History: 1963 act changed technical language, extended time for notifying commissioner of change from 30 to 90 days,
and added provisions for amended returns; 1965 act distinguished between income, profits or earnings changed, adjusted
or corrected by "any official of the United States government, or any agency thereof" and returns amended by the director
of internal revenue; 1969 act increased interest rate from 0.5% to 0.75% per month; P.A. 76-322 increased interest rate to
1%; P.A. 77-614 substituted commissioner of revenue services for tax commissioner, effective January 1, 1979; P.A. 80-307 increased interest rate temporarily to 1.25% for taxes due on or after July 1, 1980, but not later than June 30, 1981;
P.A. 81-411 continued interest on delinquent taxes at 1.25% per month, effective July 1, 1981, and applicable to taxes
becoming due on or after that date; P.A. 84-423 increased rate of interest applicable to the amount of additional tax due
on an amended return from 1.25% to 1.66% per month; P.A. 93-74 decreased interest rate from 1.66% to 1.25%, effective
May 19, 1993, and applicable to taxes due and payable on and after January 1, 1994; May Sp. Sess. P.A. 94-4 reduced
interest rate from 1.25% 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. 97-243 divided existing
section into Subsecs. (a) and (b), provided for an administrative hearing with the department before taking an appeal to
the Superior Court, established the time for filing a claim and made technical changes, effective July 1, 1997, and applicable
to claims for refund filed on or after said date; P.A. 00-174 amended Subsec. (a)(1) to delete requirement that information
required to be reported under this section be in the form of an affidavit, to add provisions re filing an amended return and
to make technical changes for purposes of gender neutrality, effective July 1, 2000; P.A. 02-103 made technical changes
in Subsec. (a)(1).
Cited. 135 C. 62.
Where additional tax is determined to be due as result of changes, adjustments or corrections in corporation's returns
to federal collector of internal revenue in accordance with provisions of this section, tax commissioner must notify corporation of additional taxes due "within a reasonable time" and three-year limitation set forth in section 12-233 does not apply.
153 C. 109, 110. History discussed. Id., 110, 111.
Cited. 44 CS 90.