Raised Bill No. 7270 introduces significant amendments to Connecticut's tax law, focusing on the procedures for taxpayers contesting tax assessments and the penalties for late tax payments. Effective October 1, 2025, taxpayers filing protests must submit a detailed form prescribed by the Commissioner of Revenue Services, including their legal name, contact information, tax type, periods at issue, and specific issues contested, along with supporting evidence. If the required information is missing, the commissioner will notify the taxpayer, who has ten business days to provide the details; failure to do so will invalidate the protest. The bill also repeals and replaces Section 12-206, imposing a penalty of ten percent of the unpaid amount or a minimum of fifty dollars for late payments, and allows the commissioner to request further documentation from taxpayers.

Additionally, the bill revises the process for filing claims for refunds and amending returns, requiring companies to file claims within three years of the due date and mandating a response from the commissioner within ninety days. It updates the language to replace gender-specific terms with neutral terms, such as changing "his" to "the commissioner's." The bill also establishes new provisions for deductions related to retirement income, organ donation expenses, and financial assistance from the Crumbling Foundations Assistance Fund, aiming to provide tax relief to lower and middle-income individuals and families. Overall, Raised Bill No. 7270 seeks to streamline tax processes, enhance tax equity, and clarify the rights and responsibilities of taxpayers in Connecticut.

Statutes affected:
Raised Bill: 12-206, 12-225, 12-226, 12-236, 12-268i, 12-311, 12-330l, 12-418, 12-447, 12-461, 12-553, 12-595, 12-729, 12-701