DRS: 12-720(a)-6, Alternative to filing group declaration for S corporations only: composite declaration - Repealed Effective 4/6/00

DRS has reproduced this regulation. This is an unofficial copy. Official copies of regulations ONLY are available from the Commission on Official Legal Publications. 111 Phoenix Avenue. Enfield, CT 06082. colp@jud.state.ct.us Copies of DRS forms and publications are available at http://www.ct.gov/drs

Repealed Effective 4/6/00

Connecticut Regulation, Reg. Sec.12-720(a)-6. Alternative to filing group declaration for S corporations only: composite declaration.

(a) With respect to any nonresident S corporation shareholders who are not included in a group return under §12-719-1 of Part XI, and for whom no agreements have been filed as described in §12-719-2(b) of Part XI, an S corporation doing business in Connecticut or having income derived from or connected with sources within Connecticut shall file a composite declaration (Form CT-1120SI-ES) and make appropriate payments of estimated tax on behalf of each shareholder, the tax on whose Connecticut taxable income derived from or connected with sources within this state, other than the tax withheld from wages or other income pursuant to Part IX, can reasonably be expected to exceed $200 for the taxable year of the S corporation.

(b)(1) Composite estimated tax payments by an S corporation on behalf of its nonresident shareholders are considered to be Connecticut income tax paid by such shareholders. The tax shall be calculated at the highest marginal rate on each nonresident S corporation shareholder’s pro rata share of S corporation separately computed income derived from or connected with Connecticut sources.

(2) An S corporation paying tax on behalf of its nonresident shareholders pursuant to this section may recover such payments from the shareholders for whom they were made.

(3) The filing of a Form CT-1120SI-ES and payments of estimated tax by an S corporation on behalf of its nonresident shareholders shall be in accordance with the provisions of this Part, based upon the taxable year of the S corporation. The Form CT-1120SI-ES and installments shall contain the name and address of the S corporation as shown on its Form CT-1120SI and the taxable year of the composite return.

(4) An S corporation required to file a Form CT-1120SI-ES and to pay composite estimated tax installments shall also attach a detailed schedule to the composite declaration of estimated tax showing the names (in columnar form and in alphabetical order by last name), addresses, social security numbers and amounts of estimated tax of the included shareholders.

(c) While this section pertains to Section 12-720(a) 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 11/18/1994)