Connecticut House Bill HB05189

Connecticut 2019 Regular Session

• Introduced: 1/11/19
• Refer: 1/11/19

Caption

An Act Waiving Interest Arising From The Filing Of Certain Amended Tax Returns.

Impact

If enacted, HB 05189 would amend existing tax statutes by eliminating interest charges on applicable amended returns, effectively extending a form of leniency to taxpayers. This would likely encourage more individuals and businesses to comply with tax regulations and amend their returns when necessary, rather than avoiding the process due to potential financial penalties from accrued interest. Additionally, the bill acknowledges the adjustments made to bonus depreciation rules and signals the state's willingness to assist taxpayers during transitions prompted by legislative changes.

Summary

House Bill 05189 proposes that the Department of Revenue Services waive any interest resulting from the filing of certain amended tax returns. This legislation is particularly relevant for returns that need to be amended due to changes made to the bonus depreciation tax deduction in public act 18-49. The intent behind this bill is to alleviate some of the financial burden on taxpayers who amending their tax returns based on adjustments made to tax regulations. The bill reflects the state’s recognition of the complexities that taxpayers face when navigating amended returns and seeks to provide relief in those instances where adjustments to tax deductions may have a significant impact on the amounts owed.

Contention

Despite the potential benefits, there may be points of contention regarding the implications of waiving interest on amended returns. Some legislators may argue that this could lead to abuse of the system, where taxpayers might be incentivized to file amended returns for minor errors or to take advantage of the interest waiver. Further, there could be debates around the fairness of such waivers, especially concerning the revenue impact on the state if a significant number of taxpayers utilize this provision. The bill raises questions about balancing taxpayer relief with maintaining the integrity of the state's tax system.