Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part III - Part-year Resident individuals & trusts › Section 12-717(c)(4)-1 - Special accruals not required in certain cases

Current through July 10, 2024
(a)
General
.
(1) The special accruals
				required by this Part for a part-year resident individual changing his or her
				status from resident to nonresident need not be made if the individual elects
				to defer Connecticut income tax by filing with the Department a surety bond or
				other security as provided herein. Except with regard to withholding from
				Connecticut lottery winnings (see subdivision (c)(5) below), such surety bond
				or other security shall be in an amount not less than the amount of additional
				Connecticut income tax which would be payable if no surety bond or other
				security were filed. The filing of a surety bond or other security is
				conditioned upon the filing for one or more subsequent taxable years of
				Connecticut nonresident individual income tax returns and the inclusion therein
				of amounts accruable in Connecticut adjusted gross income for one or more
				subsequent taxable years as if such individual had not changed resident status
				(i.e., such accruable amounts shall be reported as amounts derived from or
				connected with Connecticut sources during those one or more subsequent taxable
				years). The additional Connecticut income tax which is considered in
				determining the amount of the surety bond or other security (except in the case
				of withholding from Connecticut lottery winnings) which the individual would be
				required to furnish is based on the amount on which the individual would have
				been obliged to pay tax if no bond or other security had been filed, taking
				into account all accrued items of income, gain, loss, deduction and any of the
				modifications of §§
										12-701(a)(20)-2
				and
				12-701(a)(20)-3
				of Part I.
(2) If a part-year
				resident individual elects to defer Connecticut income tax in accordance with
				the provisions of this section, such taxpayer shall forward with the
				Connecticut part-year resident income tax return a separate statement showing
				the nature and amount of each item of accrued income, gain, loss and deduction
				as of the date of the change of residence, together with a computation of the
				additional Connecticut income tax which would be due if the election provided
				by this section had not been made and if the accrued items were properly
				included in Connecticut adjusted gross income during the residency portion of
				the taxable year on the Connecticut part-year resident income tax return. In
				making such election, which shall be binding upon the part-year resident
				individual's heirs, representatives, assigns, successors, executors and
				administrators, the part-year resident individual expressly agrees to file the
				Connecticut nonresident income tax return or returns as required by this
				section and to include thereon the amounts so accruable under this section as
				amounts derived from or connected with Connecticut sources and consents to
				personal jurisdiction in Connecticut for Connecticut income tax
				purposes.
(3) A part-year resident
				trust is also entitled to file a surety bond or other security as provided in
				this section. Wherever reference is made in this section to a part-year
				resident individual, such reference shall be construed to include a part-year
				resident trust, provided any reference to a part-year resident individual's
				Connecticut adjusted gross income shall be construed to mean a resident trust's
				Connecticut taxable income.