Sec. 12-687. Timing of payments. Late payments. - Connecticut Statutes

      Sec. 12-687. Timing of payments. Late payments. (a) Any electronic funds transfer shall be initiated in a timely fashion in order to ensure that the bank account designated by the department is credited by electronic funds transfer for the amount of the tax payment required to be made by such method on or before the due date thereof, or, in the case of the payment over by an employer of income tax deducted and withheld from employee wages, the next succeeding day that is not a Saturday, Sunday or legal holiday, as defined in section 12-39a.

      (b) (1) Where a tax payment is required to be made by electronic funds transfer, any payment made by other than electronic funds transfer shall be treated as a tax payment not made in a timely manner, and any payment made by electronic funds transfer, where the bank account designated by the department is not credited for the amount of the tax payment on or before the due date thereof, or in the case of the payment over by an employer of income tax deducted and withheld from employee wages, the next succeeding day that is not a Saturday, Sunday or legal holiday, as defined in section 12-39a, shall be treated as a tax payment not made in a timely manner. Any tax payment treated under this subsection as a tax payment not made in a timely manner shall be subject to penalty and interest in accordance with the applicable provisions of the general statutes.

      (2) Where any tax payment is treated under this subsection as a tax payment not made in a timely manner because it is made by other than electronic funds transfer, there shall be imposed a penalty equal to ten per cent of the tax payment required to be made by electronic funds transfer. Where any tax payment made by electronic funds transfer is treated under this subsection as a tax payment not made in a timely manner because the bank account designated by the department is not credited by electronic funds transfer for the amount of the tax payment on or before the due date thereof, there shall be imposed a penalty equal to two per cent of the tax payment required to be made by electronic funds transfer, if such failure to pay by electronic funds transfer is for not more than five days, five per cent of the tax payment required to be made by electronic funds transfer, if such failure to pay by electronic funds transfer is for more than five days but not more than fifteen days, and ten per cent of the tax payment required to be made by electronic funds transfer, if such failure to pay by electronic funds transfer is for more than fifteen days.

      (May Sp. Sess. P.A. 92-17, S. 37, 59; P.A. 94-6, S. 3, 4; 94-175, S. 21, 32; May Sp. Sess. P.A. 94-4, S. 80, 85; P.A. 95-160, S. 64, 69; P.A. 98-244, S. 27, 35.)

      History: May Sp. Sess. P.A. 92-17, S. 37 effective June 19, 1992, and applicable to any tax payments or estimated tax payments due on or after January 1, 1993; P.A. 94-6 amended Subsecs. (a) and (b) to allow employers an additional day to pay over withholding taxes to the department, effective April 7, 1994, and applicable to payments required to be made on or after said date; P.A. 94-175 made technical change in Subsecs. (a) and (b), effective June 2, 1994; May Sp. Sess. P.A. 94-4 revised effective date of P.A. 94-175 but without affecting this section; P.A. 95-160 revised effective date of May Sp. Sess. P.A. 94-4 but without affecting this section; P.A. 98-244 modified timely payment with respect to Saturdays, Sundays and holidays, and payments over by an employer and replaced flat 10% penalty with 2%, 5% and 10% rates tied to the period of lateness, effective June 8, 1998, and applicable to payments first due and payable on and after October 1, 1998.