Conn. Agencies Regs. § 12-740(a)-1 – Preamble and table of contents to Connecticut income tax regulations

INCOME TAX

(a) Preamble. Sections 12-701(c), 12-705(a), (b) and (c), 12-708 (b) and (d), 12-711(b)(3) and (c), 12-712(a)(1), (2) and (3), 12-713(b), 12-714(b)(2), 12-719(a), 12-720(b), 12-722(d), 12-723, 12-725(a), 12-726(b), 12-727(b), 12-739(d) and 12-740(a) and (c) of the general statutes authorize the adoption by the Commissioner of Revenue Services of this section and the regulations that are enumerated in (b) of this section to carry into effect the provisions of chapter 229 of the Connecticut General Statutes. Each such regulation has been assigned a section number that corresponds to the section of the Connecticut General Statutes pursuant to which such regulation is authorized or required or with respect to which such regulation pertains for purposes of implementation, procedural details or supplementary interpretation. However, whenever that section number corresponds to a section that does not include the authorization or requirement for such regulation, a reference is made to the section providing such authorization or requirement.
(b) Table of contents. The Connecticut income tax regulations are divided into 14 parts as follows: Part I. Resident individualsSec. 12-701(a)(1)-1Resident of this state.Sec. 12-701(a)(20)-1Connecticut adjusted gross income of a resident individual.Sec. 12-701(a)(20)-2Modifications increasing federal adjusted gross income.Sec. 12-701(a)(20)-3Modifications reducing federal adjusted gross income.Sec. 12-701(a)(20)-4Modification for Connecticut fiduciary adjustment.Sec. 12-701(a)(20)-5Modification of federal adjusted gross income for partnership income or loss reportable by resident partner. Sec. 12-701(a)(20)-6Connecticut adjusted gross income of resident shareholder of S corporationPart II. Nonresident individualsSec. 12-700(b)-1Connecticut income tax imposed upon nonresident individuals.Sec. 12-701(a)(2)-1Nonresident of this state.Sec. 12-711(b)-1Connecticut adjusted gross income derived from or connected with sources within this state. Sec. 12-711(b)-2Income and deductions from Connecticut sources—general property in Connecticut.Sec. 12-711(b)-3Items attributable to real or tangible personal property in Connecticut.Sec. 12-711(b)-4Business, trade, profession or occupation carried on in Connecticut.Sec. 12-711(b)-5Income from intangible personal property.Sec. 12-711(b)-6Deductions with respect to capital losses, passive activity losses and net operating losses. Sec. 12-711(b)-7Compensation not constituting income derived from Connecticut sources.Sec. 12-711(b)-8Rentals and gains from the sale or exchange of real property.Sec. 12-711(b)-9Earnings of salespersons.Sec. 12-711(b)-10Employees compensated on mileage basis.Sec. 12-711(b)-11Wages of nonresident seamen.Sec. 12-711(b)-12Pension or other retirement benefit plans.Sec. 12-711(b)-13Income from vessels.Sec. 12-711(b)-14Prizes, awards and similar payments.Sec. 12-711(b)-15Other methods of apportionment.Sec. 12-711(b)-16Incentive stock options.Sec. 12-711(b)-17Property transferred in connection with the performance of services.Sec. 12-711(b)-18Nonqualified stock options.Sec. 12-711(b)-19Nonqualified deferred compensation.Sec. 12-711(b)-20Covenants not to compete.Sec. 12-711(c)-1Income and deductions partly from Connecticut sources.Sec. 12-711(c)-2Business, trade, profession or occupation carried on wholly within Connecticut.Sec. 12-711(c)-3Business, trade, profession or occupation carried on partly within and partly without Connecticut. Sec. 12-711(c)-4Allocation and apportionment of income from a business, trade, profession or occupation carried on partly within and partly without Connecticut. Sec. 12-711(c)-5Earnings of nonresident employees and officers rendering personal services within Connecticut. Sec. 12-711(c)-6Special rules for security and commodity brokers.Sec. 12-711(c)-7Professional athletes and entertainers.Sec. 12-711(d)-1Military pay.Sec. 12-711(f)-1Purchase and sale for own account.Sec. 12-712(d)-1Alternate method of allocation.Part III. Part-year resident individuals and trustsSec. 12-700(c)-1Part-year resident individuals.Sec. 12-700(c)-2Part-year resident trusts.Sec. 12-701(a)(6)-1Change of residence of trust.Sec. 12-717(a)-1Part-year resident individuals: income derived from or connected with sources within Connecticut. Sec. 12-717(b)-1Part-year resident trusts: income derived from or connected with sources within Connecticut.Sec. 12-717(c)(1)-1Special accruals: change from resident to nonresident.Sec. 12-717(c)(2)-1Special accruals: change from nonresident to resident.Sec. 12-717(c)(3)-1Accrued items not to be included in subsequent taxable periods.Sec. 12-717(c)(4)-1Special accruals not required in certain cases.Sec. 12-717-1Part-year residents: capital losses and passive activity losses.Sec. 12-717-2Part-year residents: net operating loss deduction.Sec. 12-717-3Part-year residents: income or loss from business, trade, profession or occupation.Sec. 12-717-4Part-year residents: distributive or pro rata share of partners and S corporation shareholders. Sec. 12-717-5Taxpayers to whom the special accrual rules apply.Part IV. Resident and nonresident trusts and estatesSec. 12-701(a)(4)-1Resident trust or estate.Sec. 12-701(a)(9)-1Connecticut taxable income of a resident trust or estate.Sec. 12-701(a)(10)-1Definition of Connecticut fiduciary adjustment.Sec. 12-701(a)(10)-2Modifications comprising the Connecticut fiduciary adjustment: additions.Sec. 12-701(a)(10)-3Modifications comprising the Connecticut fiduciary adjustment: subtractions.Sec. 12-701(a)(10)-4Treatment of set-asides for charitable purposes.Sec. 12-713(a)-1Connecticut taxable income derived from or connected with sources within Connecticut of a nonresident trust or estate. Sec. 12-713(a)-2Share of a nonresident trust or estate in distributable net income.Sec. 12-713(a)-3Items not in distributable net income of a nonresident trust or estate.Sec. 12-713(a)-4Items derived from or connected with Connecticut sources of a nonresident trust or estate. Sec. 12-714(a)-1Share of a nonresident trust, estate or beneficiary in income from Connecticut sources.Sec. 12-714(a)-2Character of items.Sec. 12-714(b)-1Special rule where a trust or estate has no federal distributable net income.Sec. 12-716(a)-1Allocating the Connecticut fiduciary adjustment among trust or estate and its beneficiaries.Sec. 12-716(b)-1Method of attributing certain modifications among trust or estate and beneficiaries.Part V. Filing statusSec. 12-702(c)(1)-1Connecticut income tax returns of husband and wife.Sec. 12-702(c)(1)-2Relief of spouse from Connecticut income tax liability on joint Connecticut income tax return. Sec. 12-702(c)(1)-3Enrolled member of federally recognized tribe.Part VI. Credit for income taxes paid to another jurisdictionSec. 12-704(a)-1Resident or part-year resident credit for taxes paid to another state, political subdivision of another state, the District of Columbia, a province of Canada or political subdivision of a province of Canada. Sec. 12-704(a)-2Limitations—general.Sec. 12-704(a)-3Limitations where credit is claimed for income taxes paid both to a qualifying jurisdiction and also to one or more of its political subdivisions. Sec. 12-704(a)-4Definitions.Sec. 12-704(b)-1Amended Connecticut income tax return to report any change in the amount of income tax required to be paid to a qualifying jurisdiction. Sec. 12-704(c)-1Disallowance where credit is claimed against the income tax imposed by a qualifying jurisdiction for a taxpayer's Connecticut tax liability. Sec. 12-704(d)-1RenumberedPart VII. Partnerships and S corporationsSec. 12-712(a)(1)-1Partnership income and deductions of a nonresident partner derived from Connecticut sources. Sec. 12-712(a)(2)-1Nonresident shareholder's pro rata share of S corporation income derived from or connected with sources within Connecticut. Sec. 12-712(b)-1Special rules as to nonresident partners.Sec. 12-715(a)-1Modification of partnership items in partner's income tax return.Sec. 12-715(a)-2Modification of S corporation items in shareholder's income tax return.Sec. 12-715(b)-1Character of partnership items.Sec. 12-715(b)-2Character of S corporation items.Sec. 12-715(c)-1Connecticut income tax avoidance or evasion.Sec. 12-726(a)-1Informational return required from partnership.Sec. 12-726(b)-1Informational return required from S corporation.Part VIII. Estimated taxSec. 12-701(a)(11)-1Estimated tax.Sec. 12-701(a)(12)-1Required annual payment.Sec. 12-722-1Estimated payments by husband and wife. Change of status. Death of a spouse.Sec. 12-722(a)-1Addition to tax not subject to interest or penalty.Sec. 12-722(d)(2)-1Annualized income installments.Sec. 12-722(n)-1Installments due after date of death.Part IX. WithholdingSec. 12-705(a)-1Requirement of withholdingSec. 12-705(a)-2Determining Connecticut income tax to be deducted and withheld from wages paid to resident employees. Sec. 12-705(a)-3Certain supplemental compensation.Sec. 12-705(a)-4Withholding or exemption certificate.Sec. 12-705(a)-5Addition to or reduction from withholdingSec. 12-705(a)-6Determining Connecticut income tax to be withheld on wages paid to nonresident employees.Sec. 12-705(a)-7Wages paid through an agent, fiduciary or other person on behalf of two or more employers.Sec. 12-705(a)-8Furnishing amended withholding or exemption certificate.Sec. 12-705(b)-1Professional athletes and entertainers.Sec. 12-705(b)-2Gambling winnings.Sec. 12-705(b)-3Withholding for resident individuals who are recipients of pensions or annuities.Sec. 12-705(b)-4Distributions.Sec. 12-705(b)-5Liability of third parties paying wages.Sec. 12-705(c)-1Voluntary withholding other than by employers.Sec. 12-705(c)-2Voluntary withholding by employers.Sec. 12-705(c)-3Voluntary withholding for military retirees.Sec. 12-705(c)-4Voluntary withholding for civil service retirees.Sec. 12-706(b)-1Wage and tax statement.Sec. 12-706(c)-1Withheld amounts to be credited against income tax liability of employees.Sec. 12-707-1Schedule for filing withholding tax returns and payment of taxes.Sec. 12-707-2Liability for tax.Sec. 12-707-3Withheld taxes trust fund.Part X. ExtensionsSec. 12-723-1Extension of time for filing returns.Sec. 12-723-2Extension of time for filing group returns.Sec. 12-723-3Extension of time for payment of Connecticut income tax.Sec. 12-723-4Extension of time to file informational returns.Sec. 12-723-5Extension of time to file withholding tax returns.Sec. 12-723-6Person other than taxpayer requesting extension.Sec. 12-723-7Definitions.Part XI. ReturnsSec. 12-725-1Signing of Connecticut income tax returns, declarations, statements or other documents.Sec. 12-725-2Signing of Connecticut returns prepared by a person other than the taxpayer.Sec. 12-727(a)-1Filing on magnetic media.Sec. 12-727(a)-2Informational reporting by certain employers, payers or real estate reporting persons.Sec. 12-740-1Who must file a Connecticut income tax return.Sec. 12-740-2Returns by or for minors or persons under a disability.Sec. 12-740-3Returns by receivers.Sec. 12-740-4Returns for decedents.Sec. 12-740-5Filing of fiduciary income tax returns.Sec. 12-740-6Connecticut income tax returns for short taxable periods.Sec. 12-740-7Returns must be made and filed even if not mailed by the DepartmentSec. 12-740-8Filing of returns by nonresident aliens or persons who have not been issued a social security number Part XII. Deficiencies, refunds, interest and penaltiesSec. 12-728(a)-1Interest on deficiency assessments.Sec. 12-728(a)-2Penalties on deficiency assessments.Sec. 12-728(b)-1Notice of deficiency.Sec. 12-731-1Mathematical errors.Sec. 12-732(a)-1Claim for refund.Sec. 12-732(a)-2Claim for refund by nonobligated spouse.Sec. 12-732(b)-1Timely filing of claim for refund after the period three-year provided by section 12-732(a). Sec. 12-733(a)-1Notice of proposed deficiency.Sec. 12-733(f)-1Agreement extending time for assessing deficiency or claiming refund.Sec. 12-734-1Liens.Sec. 12-735(a)-1Penalties and interest.Sec. 12-735(b)-1Commissioner's assessment on best information.Sec. 12-735(d)-1Penalty for failure to file statement of payment to another person.Sec. 12-736(a)-1Penalty on responsible person or persons.Sec. 12-739(d)-1Application of reported overpayments.Sec. 12-742-1Offset of refunds against certain debts or obligationsPart XIII. Accounting periods and accounting methodsSec. 12-708-1Accounting period.Sec. 12-708-2Change of accounting period.Sec. 12-708-3Method of changing accounting period.Sec. 12-708-4Short taxable year resulting from a change in accounting period.Sec. 12-708-5Connecticut returns of trusts, estates or partnerships for short taxable years.Sec. 12-708-6Accounting methods.Sec. 12-708-7Change of accounting method.Sec. 12-708-8Change other than from accrual to installment method of accounting.Sec. 12-708-9Change from accrual to installment method of accounting.Part XIV. MiscellaneousSec. 12-701(b)-1Definitions.Sec. 12-727(b)-1Timely-amended federal income tax returns.Sec. 12-727(b)-2Report of amended federal income or income tax withholding return.Sec. 12-727(b)-3Federal changes not binding.Sec. 12-727(b)-4Final determination.Sec. 12-727(b)-5Recomputation of Connecticut income tax.Sec. 12-740(c)-1Retention of records.Sec. 12-740(c)-2Records of employers and other persons required to file Connecticut informational returns.

(Effective November 18, 1994; Amended March 8, 2006)