Current through September 9, 2024
(a)
Criteria for a timely electronic
funds transfer.
(1)
General
criteria. An EFT is timely if: the EFT process has been completed; the
funds have been deposited in the department's designated bank account; and the
funds are available for immediate use by the state of Connecticut on or before
the due date for the tax.
(2) For
purposes of this section, when an employer remits income tax deducted and
withheld from employee wages, "due date" means the next business day after the
due date.
(b)
Funds available for immediate use.
(1)
ACH Debit Method. For the
funds to be deposited in the department's designated bank account and available
for the state of Connecticut's immediate use on or before the due date for the
tax, a taxpayer using the ACH debit method shall initiate the EFT by 4:30 p.m.
Eastern Time (or any earlier time that the department specifies) on or before
the last business day before the date the EFT must be completed.
(2)
ACH Credit Method. For the
funds to be deposited in the department's designated bank account and available
for the state of Connecticut's immediate use on or before the due date for the
tax, a taxpayer using the ACH credit method shall initiate the EFT on or before
the deadline set by the taxpayer's bank or any earlier time that the bank
specifies if the due date (or even the bank's deadline) falls on a Saturday,
Sunday or legal holiday.
(c)
Proof of payment. A
statement prepared by the taxpayer's bank showing a transfer that decreases the
taxpayer's account balance is proof of payment if the statement shows the
amount and date of the transfer and identifies the payee as the state of
Connecticut.
(d)
Failure to
pay tax on time by EFT.
(1) Subject to
the provisions of section
12-3a
of the Connecticut General Statutes and to the provisions of the chapter or
section that impose the tax, the commissioner may waive all or part of a
penalty for late payment of the tax when it is proven to his or her
satisfaction that the failure was due to reasonable cause and was not
intentional or due to neglect.
(2)
A taxpayer's failure to pay tax on time by EFT is due to reasonable cause, and
not intentional or due to neglect, if the taxpayer proves to the commissioner's
satisfaction that the circumstances that caused the failure were beyond the
taxpayer's control.
(e)
Penalty waiver criteria for ACH debit transactions. In an ACH
debit transaction, the department or its designated agent originates the
transaction when it gets instructions from a taxpayer and is responsible for
the accuracy of the transmission. The penalty shall be waived if the taxpayer
can prove to the commissioner's satisfaction that it has:
(1) Given timely instructions to the
department's designated agent;
(2)
Been provided a confirmation number by the department or its designated agent;
and
(3) Had sufficient funds
available in the account to pay the tax.
(f)
Penalty waiver criteria for ACH
credit transactions. In an ACH credit transaction, the taxpayer
originates the transaction through its own bank and is primarily responsible
for the accuracy of the transmission. The penalty shall be waived if the
taxpayer is able to prove to the Commissioner's satisfaction that it:
(1) Initiated the transaction on
time;
(2) Provided complete and
correct information for the addenda record; and
(3) Had sufficient funds available in the
account to pay the tax.
