DRS: 12-735(d)-1, Penalty for failure to file statement of payment to another person

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Conn. Agencies Regs. 12-735(d)-1.  Penalty for failure to file statement of payment to another person.

(a) A penalty of $5.00 shall be imposed for each statement of payment to another person that an employer or payer fails to furnish to employees or payees by the last day of January for the preceding calendar year and a penalty of $5.00 shall be imposed for each informational return that an employer or payer fails to file with the Department by the last day of February for the preceding calendar year, unless such failure is due to reasonable cause and not to wilful neglect. Failure to furnish correct information on a statement of payment to another person shall be considered a failure to file that is subject to penalty under this section.

(b) The aggregate penalty imposed on an employer or payer for any one calendar year shall not exceed $2,000.

(c) For purposes of this section, "statement of payment to another person" means the "state copy" of federal Forms Forms W-2 (reporting payment of Connecticut wages), W-2G (for winnings paid to resident individuals, even if no Connecticut income tax was withheld), 1099-MISC (for payments to resident individuals or, if the payments relate to services performed wholly or partly within Connecticut, payments to nonresident individuals, even if no Connecticut income tax was withheld), 1099-R (for payments or distributions to resident individuals, but only if Connecticut income tax was withheld) and 1099-S (for all Connecticut real estate transactions) and "informational return" means a duplicate of such statement of payment to another person.

(d) While this section pertains to Section 12-735(d) of the general statutes, for purposes of supplementary interpretation, as the phrase is used in Section 12-2 of the general statutes, the adoption of this section is authorized by Section 12-740(a) of the general statutes.

(Effective November 18, 1994.)