Program is opportunity to come forward and pay back taxes and avoid possible criminal prosecution
The Connecticut Department of Revenue Services (DRS) today announced the Connecticut Offshore Voluntary Disclosure Program. “This program provides an opportunity for Connecticut taxpayers who have unreported offshore income to settle their State tax liabilities without civil or criminal penalties,” DRS Commissioner Richard Nicholson said.
The Offshore Voluntary Disclosure Program follows on the heels of the agreement between the Swiss government and the U.S. Department of Justice and Internal Revenue Service (IRS) regarding the release of the names of 4,450 United States residents suspected of using foreign bank accounts held by UBS AG to evade taxes. At Governor M. Jodi Rell’s request, Attorney General Richard Blumenthal is pursuing information from the U.S. Government relating to Connecticut taxpayers who may have undisclosed assets in Swiss banks.
“The recent agreement between United States and the Swiss Confederation, along with the efforts of Attorney General Blumenthal, mean it is only a matter of time before we find these taxpayers,” Commissioner Nicholson said. “Taxpayers that do not come forward through the voluntary disclosure program will face the possibility of criminal prosecution in addition to civil penalties and interest on the original tax amount. Taxpayers can avoid this by coming forward and getting their tax house in order.” The Disclosure Program corresponds with a similar voluntary disclosure program initiated by the IRS for federal tax liabilities on unreported offshore income, Nicholson said
The Offshore Voluntary Disclosure Program runs through January 15, 2010, and allows taxpayers to come into compliance with Connecticut tax law by reporting and paying taxes on funds kept in previously unreported offshore accounts. Taxpayers do this by sending a cover letter to DRS stating their intention to participate in the program. In addition to the letter, taxpayers must submit information about the offshore account, including:
• A description of the source of funds or other assets in each account;
• The date the initial deposit was made or the date on which the taxpayer took control or ownership of each account;
• Documentation indicating whether the principal (which includes initial deposits and all subsequent contributions) has been taxed and the tax years involved;
• The amount of potential tax liability; and
• Whether the taxpayer participated in the IRS Offshore Voluntary Disclosure Program.
More information about the Offshore Voluntary Disclosure Program will be posted on the DRS website at http://www.ct.gov/DRS/offhsore, or interested taxpayers can call the Business and Employment Tax Audit Unit during regular office hours at (860) 541-4560.
For information about other tax issues, visit the DRS website at http://www.ct.gov/DRS or call 1-800-382-9463 in state, or (860) 297-5962 from anywhere.
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