Pass-Through Entity Tax

On February 8, 2023, Governor Ned Lamont presented Connecticut lawmakers with a $50.5 billion two-year budget that called for more than $500 million in tax relief to Connecticut taxpayers.  At this point it is unclear how much of the Governor’s tax cut proposals will be adopted by the Legislature, but since the Democrats control both the

Louis Schatz and Alan Preis, CPA, will present the session “Current Developments in NJ/CT Taxation” during the 2021 NCCPAP Virtual Accounting and Tax Symposium.

Lou will review recent Connecticut tax developments, including legislative, judicial, and administrative changes. Particular emphasis will be placed on Connecticut’s 2021 legislative changes, including new legislation impacting the treatment of teleworking

On January 19, 2020, the IRS issued Notice 2021-10 (the “Notice”), which extends the relief for Qualified Opportunity Funds (QOF) and their investors provided for by Notice 2020-39. Notice 2020-39 announced various extensions of deadlines for QOFs and their investors due to COVID-19 pandemic, each of which are discussed here.

A summary of the

On November 9, 2020, the IRS issued Notice 2020-75 (the “Notice”), which announced that the IRS intends to issue proposed regulations to clarify that state and local income taxes (“SALT”) imposed on and paid by a partnership or an S corporation, such as Connecticut’s Pass-through Entity Tax,  are deductible by the partnership or S corporation

On June 5, 2020, the IRS issued Notice 2020-39 (the “Notice”), which announces various extensions of deadlines for Qualified Opportunity Funds (QOF) and their investors due to COVID-19 pandemic. A summary of the extensions that are set forth in the Notice are summarized below:

180-Day Investment Period

Generally, taxpayers must reinvestment capital gain in a

In Announcement 2020(7) the Department of Revenue Services (“DRS”) announced that it was extending the time that a taxpayer has to file certain administrative protests with the DRS’s Appellate Division in response to a notice of assessment or a proposed disallowance of a claim for refund.  In addition, the DRS has extended the time that

Prompted by COVID-19, the Connecticut Department of Revenue Services (DRS) is granting an automatic extension of Connecticut filing deadlines for some Connecticut tax returns due on or after March 15, 2020, and before June 1, 2020.

The returns subject to automatic extension and the new extended filing dates and payment deadlines are as follows:

Last year, the Connecticut General Assembly enacted the pass-through entity tax at the flat rate of 6.99% on most pass-through entities, including partnerships, S corporations and limited liability companies that are treated as partnerships or S corporations for federal income tax purposes.  Initially, each individual owner of a pass-through entity was entitled to a refundable