The Connecticut Department of Revenue Services (DRS) begins accepting electronic (e-filed) state income tax returns Friday, January 14, 2011. New DRS Commissioner Kevin B. Sullivan said taxpayers can expect to receive their refunds just as quickly as they have in the past.

Commissioner Sullivan said that even taxpayers directed by the Internal Revenue Service (IRS) to postpone submitting federal income tax returns will be able to submit a state return Friday.

“Holiday bills are coming in and taxpayers want to get their refunds as quickly as possible,” Commissioner Sullivan said. “Taxpayers expect the same efficient service from DRS as in the past because the issues delaying the ability of the IRS to process certain federal income tax returns have no impact on Connecticut processing returns from the same taxpayers. Given the fiscal condition of the state, we need to do what we can as soon as we can.”

The late 2010 approval of federal tax credit extensions by the U.S. Congress caused last minute computer re-programming. IRS has directed taxpayers who file itemized returns and those taxpayers that claim the higher education or educator expense deductions to delay filing federal returns until mid to late February.

Commissioner Sullivan said both the DRS Taxpayer Service Center (TSC) and the Fed/State e-file system will accept electronic state income tax returns Friday. Taxpayers using TSC or who submit a “State Only” return through Fed/State e-file will receive confirmation that DRS has received their returns for processing.

DRS already has begun processing the paper tax returns received so far. Last year, more than 1.2 million or 70% of income tax returns were filed electronically compared to 470,000 paper returns filed. Taxpayers who file electronically and choose direct deposit of their refund can expect to receive their refund within one week. Paper filers who request a check mailed to them may wait as long as ten weeks to receive a refund. Said Commissioner Sullivan, “Electronic filing reduces state costs and speeds up both taxpayer refunds and collections.”

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.