DRS: 12-727(b)-6, Report of change or amended Connecticut income tax return where bankruptcy case has been commenced

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

Conn. Agencies Regs. 12-727(b)-6. Report of change or amended Connecticut income tax return where bankruptcy case has been commenced.

(a) Where a case under chapter 7 or chapter 11 of title 11 of the United States Code has been commenced in which the debtor is an individual who would otherwise be required to file a Connecticut income tax return under 12-740-1 of Part XI, any trustee who files an amended federal income tax return for a taxable year or years preceding the commencement of such case resulting in a change in federal income shall also mail, within 90 days thereafter, a similarly amended Form CT-1040X to the address that is specified in 12-740-9 of Part XI and shall, in accordance with title 11 of the United States Code, provide for the payment of the additional Connecticut income tax, if any, shown to be due thereon, but only if the amendment of the federal return increases or decreases the Connecticut income tax liability. "Connecticut income tax liability" means the liability for Connecticut income tax, as defined in 12 (a)-1, plus any liability for net Connecticut minimum tax, as defined in 12 (a)-1.

(b) If the amount of federal adjusted gross income or federal alternative minimum taxable income of an individual who is a debtor in a case that has been commenced under chapter 7 or chapter 11 of title 11 of the United States Code is changed or corrected by the Internal Revenue Service or other competent authority for a taxable year or years preceding the commencement of such case, the taxpayer and the trustee shall report such change or correction within 90 days after the final determination of such change or correction and shall concede the accuracy thereof or state wherein it is erroneous, but only if the federal change or correction increases or decreases the Connecticut income tax liability. Such report may be required at any other time if the Commissioner deems it necessary. The report shall be made on a Form CT-1040X and shall be mailed to the address that is specified in 12-740-9 of Part XI. The form used to report the federal change or correction shall be accompanied by a copy of the final federal determination as well as any of the pertinent data in all cases in which a Connecticut income tax refund, based on such final determination, is claimed. Where additional Connecticut income tax is due, the taxpayer may, in lieu of a copy of the final determination, give full details of the changes on the prescribed form and shall, in accordance with title 11 of the United States Code, provide for the payment of the additional Connecticut income tax shown to be due thereon. "Connecticut income tax liability" means the liability for Connecticut income tax, as defined in 12 (a)-1, plus any liability for net Connecticut minimum tax, as defined in 12 (a)-1.

(c) Where a case under chapter 7 or chapter 11 of title 11 of the United States Code has been commenced in which the debtor is an individual who would otherwise be required to file a Connecticut income tax return under 12-740-1 of Part XI, the regulations of this Part apply to any trustee

(1) who files an amended federal income tax return for the bankruptcy estate for a taxable year or years following the commencement of such case resulting in a change in federal income, except that the Form CT-1041, with "AMENDED" written across the top thereof, shall be mailed to the address that is specified in 12-740-9 of Part XI and the trustee shall, in accordance with title 11 of the United States Code, provide for the payment of the additional Connecticut income tax, if any, shown to be due thereon.

(2) where the amount of federal taxable income of the bankruptcy estate is changed or corrected by the Internal Revenue Service or other competent authority for a taxable year or years following the commencement of such case, except that the Form CT-1041, with "AMENDED" written across the top thereof, shall be mailed to the address that is specified in 12-740-9 of Part XI and the trustee shall, in accordance with title 11 of the United States Code, provide for the payment of the additional Connecticut income tax, if any, shown to be due thereon.

(d) While this section pertains to Section 12-727(b) 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.)