Connecticut State Income Tax Protest

CONNECTICUT STATE INCOME TAX PROTEST

Filed with the Department of Revenue Services — Appellate Division

TABLE OF CONTENTS

1. Sender / Taxpayer Information
2. Addressee and Caption
3. Subject and Identification of Assessment
4. Statement of Timeliness
5. Statement of Facts
6. Grounds for Protest
7. Request for Oral Hearing
8. Refund Claim and Reservation of Rights
9. Burden of Proof and Standard of Review
10. Relief Requested
11. Authorization, Verification, and Signature
12. Exhibit and Schedule List
13. Connecticut Practice Notes
14. Sources and References

1. SENDER / TAXPAYER INFORMATION

[TAXPAYER FULL LEGAL NAME]

Connecticut Tax Registration No.: [________________________________]

Social Security No. / FEIN (last 4): [____]

Mailing Address: [STREET], [CITY, CT ZIP]

Telephone: [NUMBER]

Email: [EMAIL]

2. ADDRESSEE AND CAPTION

Department of Revenue Services

Appellate Division

450 Columbus Boulevard, Suite 1

Hartford, CT 06103-1837

Date: [__/__/____]

Sent via: ☐ U.S. Certified Mail, Return Receipt Requested ☐ myconneCT secure messaging ☐ Hand Delivery ☐ Email to [email protected]

3. SUBJECT AND IDENTIFICATION OF ASSESSMENT

Re: Protest of Notice of Assessment — Connecticut Personal Income Tax

To the Appellate Division:

The above-named Taxpayer ("Taxpayer") hereby submits this written protest pursuant to Conn. Gen. Stat. § 12-729(b) against the deficiency assessment described above (the "Assessment") and respectfully requests that the Appellate Division reconsider, abate, and/or modify the Assessment for the reasons set forth herein.

4. STATEMENT OF TIMELINESS

4.1. The Notice of Assessment was mailed by the Department of Revenue Services ("DRS") on [DATE OF NOTICE].

4.2. This Protest is filed on [DATE], which is within the sixty (60)-day period prescribed by Conn. Gen. Stat. § 12-729(b).

4.3.

4.4. By filing this Protest, Taxpayer expressly preserves all rights to (a) administrative review by the DRS Appellate Division; (b) judicial appeal to the Superior Court for the Judicial District of New Britain, Tax Session, under Conn. Gen. Stat. § 12-730; and (c) any related refund claim under Conn. Gen. Stat. § 12-732.

5. STATEMENT OF FACTS

5.1. Taxpayer is a [Connecticut resident individual / nonresident individual / part-year resident] with a residence at [ADDRESS].

5.2. For the tax period(s) ended [___], Taxpayer timely filed Form [CT-1040 / CT-1040NR/PY] reporting Connecticut adjusted gross income of $[AMOUNT] and tax of $[AMOUNT].

5.3. On [DATE], DRS issued a [Notice of Proposed Assessment / Notice of Assessment] asserting additional tax of $[AMOUNT] based on [brief description of DRS adjustments — e.g., disallowed credits, recharacterized residency, IRC § 482 adjustment, federal RAR conformity, Schedule CT-SI sourcing].

5.4. Taxpayer disagrees with the Assessment for the reasons stated in Section 6 below.

5.5. Taxpayer cooperated fully with the DRS examiner, provided [identify documents], and the audit closing conference occurred on [DATE].

6. GROUNDS FOR PROTEST

Taxpayer protests the Assessment on the following grounds, each of which is independently sufficient to require abatement or modification:

6.1. Erroneous Determination of Connecticut Source / Residency

Taxpayer [was not a Connecticut resident / had no Connecticut source income / incorrectly allocated income under Chapter 229] for the tax period(s) at issue. [Factual basis — domicile, statutory residency 183-day count under § 12-701(a)(1)(B), permanent place of abode analysis, etc.]

6.2. Improper Disallowance of Deductions, Credits, or Modifications

DRS improperly disallowed the following items: [ITEMIZE — e.g., property tax credit (§ 12-704c), pass-through entity tax credit (§ 12-699), EITC, manufacturing apprenticeship credit, R&D credit]. The disallowance is contrary to the plain language of the governing statute and applicable regulations.

6.3. Federal Conformity / RAR Misapplication

The Assessment misapplies the federal Revenue Agent's Report. Connecticut conforms to the federal change only to the extent provided by Conn. Gen. Stat. § 12-727(b), and Taxpayer timely reported the federal change within ninety (90) days as required.

6.4. Request for Penalty Relief Based on Reasonable Cause

Pursuant to Conn. Gen. Stat. § 12-735(c), the commissioner may waive all or part of the applicable Chapter 229 payment penalty if satisfied that the failure to pay was due to reasonable cause and was neither intentional nor due to neglect. Taxpayer requests that waiver because [Specific reasonable cause facts — illness, casualty, reliance on competent professional advice, ambiguity of law, first-time non-compliance.]

6.5. Statute of Limitations

The Assessment is barred in whole or in part by the three-year statute of limitations in Conn. Gen. Stat. § 12-733(a). [Identify periods barred.]

6.6. Mathematical or Clerical Errors

The Assessment contains mathematical or clerical errors on its face, including [itemize], which result in an overstatement of tax of $[AMOUNT].

6.7. Constitutional and Other Defenses

Taxpayer reserves and asserts all available defenses under the Due Process and Commerce Clauses of the United States Constitution and Article First, Sections 8 and 10 of the Connecticut Constitution, including any defense based on lack of substantial nexus, fair apportionment, non-discrimination, or fair relation to services provided.

7. REQUEST FOR ORAL HEARING

Pursuant to Conn. Gen. Stat. § 12-729(b) and the standard procedures of the DRS Appellate Division, Taxpayer:

☐ Requests an in-person oral hearing at the DRS offices in Hartford.

☐ Requests a telephonic or video hearing.

☐ Waives an oral hearing and requests determination on the written record.

Counsel of record will be available on [PROPOSED DATES] and requests at least [14] days' written notice of the hearing date pursuant to standard Appellate Division practice.

8. REFUND CLAIM AND RESERVATION OF RIGHTS

8.1. To the extent any portion of the disputed tax has been paid (whether voluntarily, under protest, or pursuant to an installment plan), Taxpayer hereby asserts a contemporaneous claim for refund under Conn. Gen. Stat. § 12-732 in the amount of $[AMOUNT] plus statutory interest.

8.2. This refund claim is filed within three (3) years from the due date of the return for which the overpayment was made, as required by § 12-732(a) and Conn. Agencies Regs. § 12-732(a)-1.

8.3. Taxpayer reserves the right to amend, supplement, or expand this Protest and refund claim, including the right to assert additional grounds upon the issuance of any further notices or upon the receipt of additional information from DRS.

9. BURDEN OF PROOF AND STANDARD OF REVIEW

9.1. Taxpayer acknowledges that, as the protesting party, it bears the burden of proving the Assessment incorrect by a preponderance of the evidence. Marvin v. Commissioner of Revenue Services, 320 Conn. 484 (2016); Leonard v. Commissioner, 264 Conn. 286 (2003).

9.2. Taxpayer respectfully submits that the documentary evidence and legal authority attached hereto and to be presented at the hearing meet and exceed that burden.

9.3. Should the Appellate Division issue a Notice of Determination adverse to Taxpayer in whole or part, Taxpayer reserves the right to take a de novo appeal to the Superior Court (Tax Session, Judicial District of New Britain) under Conn. Gen. Stat. § 12-730 within thirty (30) days of the mailing date of such determination.

10. RELIEF REQUESTED

Taxpayer respectfully requests that the Appellate Division:

• A. Abate the Assessment in its entirety;
• B. In the alternative, reduce the Assessment to $[AMOUNT] as supported by the evidence;
• C. Consider waiver of the applicable payment penalty under Conn. Gen. Stat. § 12-735(c);
• D. Recompute interest on the corrected tax amount under Conn. Gen. Stat. § 12-735;
• E. Refund any overpaid tax, with statutory interest, pursuant to § 12-732; and
• F. Grant such other and further relief as is appropriate.

11. AUTHORIZATION, VERIFICATION, AND SIGNATURE

I, [NAME], declare under the penalties of false statement (Conn. Gen. Stat. § 53a-157b) that I am the [Taxpayer / authorized officer of Taxpayer / authorized representative pursuant to Form LGL-001], that I have read the foregoing Protest, and that the statements herein are true and correct to the best of my knowledge, information, and belief.

Date: [__/__/____]

[________________________________]

[NAME], [TITLE]

Counsel for Taxpayer (if represented):

[LAW FIRM NAME]

By: [________________________________]

[ATTORNEY NAME], Conn. Juris No. [####]

[STREET ADDRESS] | [CITY, CT ZIP]

Telephone: [NUMBER] | Email: [EMAIL]

A duly executed Form LGL-001 (Power of Attorney) is enclosed.

12. EXHIBIT AND SCHEDULE LIST

13. CONNECTICUT PRACTICE NOTES

• Chapter 229 only. This letter is for personal income tax under Chapter 229. Corporation business tax uses Chapter 208, with its own administrative hearing and appeal provisions (§§ 12-236 and 12-237).
• Sixty-day clock is jurisdictional. Failure to file the protest within 60 days of the mailing date of the Notice of Assessment forfeits administrative review and converts the assessment into a final, unappealable liability subject only to a refund-claim challenge under § 12-732 (after payment in full). Calendar the deadline immediately upon receipt.
• Jeopardy assessments — 10 days. Under Conn. Gen. Stat. § 12-729a(c), a written administrative protest must be filed by the tenth day after service of the jeopardy-assessment notice. A bond or other accepted security is required by that day to stay collection. Check § 12-729a(e) for review after reconsideration.
• Form APL-002. DRS's Appellate Division Protest Form is the recommended vehicle for filing. This narrative letter may serve as the substantive attachment. File electronically via myconneCT where available; retain proof of filing.
• Power of Attorney. A representative must file Form LGL-001 to be recognized by the Appellate Division. Without a valid POA on file, DRS will not communicate with counsel.
• Stay of collection. Under DRS practice, collection activity is generally suspended during the pendency of a timely-filed protest, except in jeopardy or trust-fund cases. Confirm the status with the assigned appellate officer in writing.
• De novo Superior Court appeal. Tax Session appeals under § 12-730 are de novo trials before a judge in New Britain. Taxpayer is not bound by the administrative record. Discovery is governed by the Practice Book.
• Refund claim deadline. Section 12-732 imposes a hard three-year limit measured from the due date of the return (or, if longer, certain federal change provisions under § 12-732(c)). File a protective refund claim while a federal audit is pending.
• Interest rate. Underpayment interest accrues at 1% per month under § 12-735(a)–(b); refund interest accrues at 2/3 of 1% per month under § 12-732(b).
• Penalty waiver standard. Under § 12-735(c), the commissioner may waive all or part of a Chapter 229 penalty for failure to pay if satisfied that the failure was due to reasonable cause and was not intentional or due to neglect. Document the facts; relief is discretionary and subject to § 12-3a.
• Federal RAR reporting. A federal change must be reported within 90 days (Conn. Gen. Stat. § 12-727(b)); failure to do so extends the assessment limitation period.
• Accountant-client privilege. Connecticut's CPA confidentiality provision (Conn. Gen. Stat. § 20-281a et seq.) is statutory but narrow; it does not create a Kovel-style privilege in tax controversies. Engage counsel early to preserve attorney-client privilege and work product on sensitive analyses.

14. SOURCES AND REFERENCES

• Conn. Gen. Stat. Ch. 229 (Income Tax) — https://www.cga.ct.gov/current/pub/chap_229.htm
• Conn. Gen. Stat. § 12-729 (Protest) — https://law.justia.com/codes/connecticut/title-12/chapter-229/section-12-729/
• Conn. Gen. Stat. § 12-730 (Appeal to Superior Court) — https://law.justia.com/codes/connecticut/title-12/chapter-229/section-12-730/
• Conn. Gen. Stat. § 12-732 (Refunds) — https://law.justia.com/codes/connecticut/title-12/chapter-229/section-12-732/
• Conn. Gen. Stat. § 12-735 (Penalties; waiver) — https://law.justia.com/codes/connecticut/title-12/chapter-229/section-12-735/
• Conn. Agencies Regs. § 12-732(a)-1 — https://www.law.cornell.edu/regulations/connecticut/Regs-Conn-State-Agencies-SS-12-732-a-1
• DRS Appellate Division — https://portal.ct.gov/drs/myconnect/penalty-waiver-request-and-offer-of-compromise
• Form APL-002 (Appellate Division Protest Form) — https://portal.ct.gov/-/media/drs/fillable_forms/2019forms/apl-002-fillable.pdf
• PS 2007(2) — Your Rights as a Connecticut Taxpayer — https://portal.ct.gov/drs/publications/policy-statements/2007/ps-20072-your-rights-as-a-connecticut-taxpayer
• OLR Report 2008-R-0352, Tax Appeal Process — https://cga.ct.gov/2008/rpt/2008-r-0352.htm
• Marvin v. Commissioner of Revenue Services, 320 Conn. 484 (2016)
• Leonard v. Commissioner, 264 Conn. 286 (2003)

Disclaimer: This template is provided for informational purposes only and does not constitute legal advice. An attorney licensed in Connecticut must review and customize this document before filing. Laws, regulations, and DRS procedures change frequently; verify all authorities before use.