State Taxes and Offer in Compromise

For taxpayers unable to pay state taxes in full, the Commissioner of Revenue Services in Connecticut is authorized to accept less than full payment to resolve tax disputes pursuant to State Statute CGS §12-2d.In order to accept an offer in compromise, the taxpayer must show doubt as to liability, doubt as to collectability, or doubt as to both liability and collectability. This is an extraordinary form of State Tax liability relief and should always be requested with the assistance of an experienced and knowledgeable tax relief specialist.

 

At the Law Offices of Neil Crane, LLC, we've been helping taxpayers with overwhelming state taxes since 1983. We have extensive experience handling offers in compromise at the state and federal level. Contact us online or call us at 203-230-2233 or toll free at 249-3027 for a free initial consultation.

Understanding the Process

The state offer in compromise process begins with the proper and complete submission of a Form CT 656a. All submissions must include two years of federal tax filings with supporting schedules, W-2s or 1099s, credit reports and pay stubs. All submissions are either rejected upon receipt or conditionally accepted. No offer will be conditionally accepted if the taxpayer is under bankruptcy protection, criminally charged for tax liabilities or has failed to file tax returns.

The taxpayer must also demonstrate that the state tax authorities could not reasonably expect that the taxes could be paid in installments from future income or future acquired assets.

The acceptability of a state offer in compromise depends on a careful examination and calculation of:

  • Assets
  • Liabilities
  • Monthly income

The calculation of monthly income requires disclosure of all sources of income and the proper calculation of allowable monthly expenses, all of which should be well-evidenced and documented along with the Form CT-656(a) Application. To maximize your chances for a successfully granted Connecticut offer in compromise, seek the help of a qualified tax relief attorney like the lawyers at the Law Offices of Neil Crane, LLC.

Call us at 203-230-2233 or toll free at 1-888-249-3027 for a free consultation. You can also contact us online for a prompt response from a knowledgeable and experienced State Tax offer in compromise attorney. We have office locations in Hamden, Bridgeport, Ridgefield, Waterbury and Rocky Hill, Connecticut.