Sec. 12-722. Payment of estimated tax. Payment schedule for farmers and fishermen. Interest. Penalty. Credits.
Sec. 12-722. Payment of estimated tax. Payment schedule for farmers and fishermen. Interest. Penalty. Credits. (a) Except as otherwise provided in this section, in
the case of any underpayment of estimated tax by an individual, there shall be added to
the tax an amount determined by applying interest (1) at the rate of one per cent per
month or fraction thereof, (2) to the amount of the underpayment, (3) for the period of
the underpayment.
(b) For purposes of subsection (a) of this section, the amount of the underpayment
shall be the excess of the required installment, over the amount, if any, of the installment
paid on or before the due date for the installment. For purposes of subsection (a) of this
section, the period of the underpayment shall run from the due date for the installment
to whichever of the following dates is earlier: The fifteenth day of the fourth month of
the next succeeding taxable year, or, with respect to any portion of the underpayment,
the date on which such portion is paid. For purposes of this subsection, a payment of
estimated tax shall be credited against unpaid required installments in the order in which
such installments are required to be paid.
(c) For purposes of this section, there shall be four required installments for each
taxable year. The due date for the first required installment is the fifteenth day of the
fourth month of the taxable year. The due date for the second required installment is
the fifteenth day of the sixth month of the taxable year. The due date for the third required
installment is the fifteenth day of the ninth month of the taxable year. The due date for
the fourth required installment is the fifteenth day of the first month of the next succeeding taxable year.
(d) (1) Except as provided in subdivision (2) of this subsection, the amount of any
required installment shall be twenty-five per cent of the required annual payment, as
defined in section 12-701.
(2) (A) In the case of any required installment, if the taxpayer establishes that the
annualized income installment is less than the amount determined under subdivision
(1) of this subsection, the amount of such required installment shall be the annualized
income installment, and any reduction in a required installment resulting from the application of this subdivision shall be recaptured by increasing the amount of the next required installment by the amount of such reduction and by increasing subsequent required installments to the extent that the reduction has not previously been recaptured
under this subdivision. (B) In the case of any required installment, the annualized income
installment is the excess, if any, of (i) an amount equal to the applicable percentage of
the tax for the taxable year computed by placing on an annualized basis the Connecticut
taxable income and the adjusted federal alternative minimum taxable income for months
in the taxable year ending before the due date for the installment, over (ii) the aggregate
amount of any prior required installments for the taxable year. (C) For purposes of this
subdivision, the applicable percentage for the first required installment is twenty-two
and one-half, the applicable percentage for the second required installment is forty-five,
the applicable percentage for the third required installment is sixty-seven and one-half,
and the applicable percentage for the fourth required installment is ninety.
(e) The application of this section to taxable years of less than twelve months shall
be in accordance with regulations adopted by the commissioner.
(f) In applying this section to a taxable year beginning on any date other than January
first, there shall be substituted, for the months specified in this section, the months which
correspond thereto.
(g) At the election of the individual, any installment of the estimated tax may be
paid prior to the date prescribed for its payment.
(h) Payment of the estimated income tax, or any installment thereof, shall be considered payment on account of the income tax imposed under this chapter for the taxable year.
(i) If an individual has paid as an installment of estimated tax an amount in excess
of the amount determined to be the correct amount of such installment, such amount
shall be credited against any unpaid installment or against the tax. If the amount already
paid, whether or not on the basis of installments, exceeds the amount determined to be
the correct amount of the tax, then, unless the individual has given written notice to
the commissioner that such overpayment is to be refunded, such overpayment shall be
credited against any installment of estimated tax due for the next succeeding taxable
year.
(j) (1) No addition to tax shall be imposed under subsection (a) of this section for
any taxable year if the tax shown on the return for such taxable year, or, if no return is
filed, the tax, reduced by the tax withheld under this chapter, is less than one thousand
dollars.
(2) No addition to tax shall be imposed under said subsection (a) for any taxable
year if (A) the preceding taxable year was a taxable year of twelve months and (B) the
individual did not have any liability for tax for the preceding taxable year and throughout
such year the individual was (i) a resident individual or (ii) a nonresident individual
or part-year resident individual with income, gain, loss or deduction derived from or
connected with sources within this state.
(k) For purposes of applying this section, the tax withheld under this chapter shall
be deemed a payment of estimated tax, and an equal part of such tax withheld shall be
deemed paid on each due date for such taxable year, unless the taxpayer establishes the
dates on which such tax was actually withheld, in which case the tax so withheld shall
be deemed payments of estimated tax on the dates on which such tax was actually
withheld.
(l) If, on or before January thirty-first of the following taxable year, the taxpayer
files a return for the taxable year and pays in full the amount computed on the return as
payable, then no addition to tax shall be imposed under subsection (a) of this section
with respect to any underpayment of the fourth required installment for the taxable year.
(m) For purposes of this section, if an individual is a farmer or fisherman for any
taxable year, the following provisions shall apply: (1) There shall be only one required
installment for the taxable year, (2) the due date for such installment shall be January
fifteenth of the following taxable year, (3) the amount of such installment shall be equal
to the lesser of (A) sixty-six and two-thirds per cent of the tax shown on the return for
the taxable year, or, if no return is filed, sixty-six and two-thirds per cent of the tax for
such year, or (B) if the preceding taxable year was a taxable year of twelve months and
the individual filed a return for the preceding taxable year, one hundred per cent of the
tax shown on the return for the preceding taxable year, (4) if, on or before March first
of the following taxable year, the farmer or fisherman files a return and pays in full the
amount computed on the return as payable, no addition to tax shall be imposed under
subsection (a) of this section with respect to any underpayment of the required installment, as provided in subdivision (3) of this subsection, for the taxable year, and (5) an
individual is a farmer or fisherman for any taxable year if such individual is a farmer
or fisherman, as defined in Section 6654(i)(2) of the Internal Revenue Code, for the
taxable year.
(n) (1) Except as otherwise provided in this subsection, this section shall apply to
any trust or estate.
(2) With respect to any taxable year ending before the date two years after the date
of the decedent's death, this section shall not apply to (A) the estate of such decedent,
or (B) any trust (i) all of which was treated under Sections 671 to 679, inclusive, of the
Internal Revenue Code as owned by the decedent and (ii) to which the residue of the
decedent's estate will pass under his will or, if no will is admitted to probate, which is
the trust primarily responsible for paying debts, taxes, and expenses of administration.
(3) In the case of any trust or estate to which this section applies, for any required
installment, the annualized income installment is the excess, if any, of (A) an amount
equal to the applicable percentage of the tax for the taxable year computed by placing on
an annualized basis the Connecticut taxable income and the adjusted federal alternative
minimum taxable income for months in the taxable year ending before the date one
month before the due date for the installment, over (B) the aggregate amount of any
prior required installments for the taxable year.
(June Sp. Sess. P.A. 91-3, S. 73, 168; May Sp. Sess. P.A. 92-5, S. 16, 17, 37; May Sp. Sess. P.A. 92-17, S. 15, 59; P.A.
93-74, S. 41, 67; 93-332, S. 16, 42; P.A. 95-26, S. 38, 52; 95-263, S. 2, 4; P.A. 97-81, S. 1, 2; 97-286, S. 5, 8; P.A. 04-201, S. 6.)
History: June Sp. Sess. P.A. 91-3, S. 73, effective August 22, 1991, and applicable to taxable years of taxpayers
commencing on or after January 1, 1991; May Sp. Sess. P.A. 92-5 amended Subsec. (h) to make a technical change and
added Subsec. (i), effective June 19, 1992, and applicable to taxable years of taxpayers commencing on or after January
1, 1992; May Sp. Sess. P.A. 92-17 amended Subsec. (b) to reduce the levels of estimated payments by 10% and to remove
the minimum $50 penalty for nonpayment, effective June 19, 1992, and applicable to taxable years of taxpayers commencing
on or after January 1, 1992; P.A. 93-74 replaced existing Subsec. (b) with new provisions to conform installment and
estimated payments with the federal procedure, effective May 19, 1993, and applicable to taxable years commencing on
and after January 1, 1993; P.A. 93-332 amended Subsec. (b)(5) to change statutory reference from Subdiv. (4) to Subdiv.
(2), effective June 25, 1993, and applicable to taxable years commencing on or after January 1, 1993; P.A. 95-26 amended
Subsec. (b)(4) to lower interest rate from 1.25% to 1% and made technical changes, effective July 1, 1995, and applicable
to taxes due and owing on or after July 1, 1995, whether or not those taxes first became due before said date, but failed to
take effect, since those provisions were deleted by subsequent act P.A. 95-263; P.A. 95-263 deleted Subsec. (a) re declaration
requirement, added new Subsecs. (a) and (b) re interest on underpayment and the amount of underpayment, relettered and
renumbered remaining Subsecs. and Subdivs. added reference to adjusted federal alternative minimum taxable income,
and added Subsec. (j) re when no addition to tax is imposed, Subsec. (k) re tax withheld deemed payment of estimated
tax, Subsec. (m) re installment payments by farmers and fishermen and Subsec. (n) re application of section to trusts and
estates, effective July 6, 1995, and applicable to taxable years commencing on or after January 1, 1996; P.A. 97-81 amended
Subsec. (j) to increase tax shown on return from $200 to $500, effective May 29, 1997, and applicable to taxable years
commencing on or after January 1, 1997; P.A. 97-286 amended Subsec. (m) to require one installment instead of two and
made conforming changes, effective June 26, 1997, and applicable to years commencing on or after January 1, 1997; P.A.
04-201 amended Subsec. (j)(1) to increase the minimum amount of tax for which additions to tax may be imposed from
$500 or less to less than $1,000, effective June 3, 2004, and applicable to taxable years commencing on or after January
1, 2004.