DRS: 12-727(a)-1, Filing on magnetic media

DRS has reproduced this regulation. This is an unofficial copy. Official copies of regulations ONLY are available from the Commission on Official Legal Publications. 111 Phoenix Avenue. Enfield, CT 06082. colp@jud.state.ct.us Copies of DRS forms and publications are available at http://www.ct.gov/drs

Conn. Agencies Regs. 12-727(a)-1.  Filing on magnetic media.

(a) Every person that is required to file with the Internal Revenue Service for a taxable year a number of informational returns that is more than or equal to the number that is specified in section 6011(e)(2) of the Internal Revenue Code is required to furnish those returns to the Department on magnetic media. (A Form CT-4804, Transmittal of Informational Returns Reported Magnetically, shall be completed by the transmitter (who may be the agent of the person that is required to file informational returns) of such magnetic media and shall be filed therewith.) Such persons are not permitted to file these   informational returns to the Department using paper forms, including machine-readable paper forms, in lieu of furnishing the information on magnetic media, and filing these returns using paper forms shall be treated as a failure to file that is subject to penalty under 12-735(d)-1 of Part XII. However, if 24 or fewer informational returns are required to be furnished to the Department, those returns may be furnished to the Department using paper forms, even though those returns are furnished to the Internal Revenue Service on magnetic media. For example, if a payer has made payments to 24 or fewer Connecticut independent contractors, the payer may furnish the "state copy" of the federal Form 1099-MISC to the Department using paper forms, even though the payer is required to furnish those returns to the Internal Revenue Service on magnetic media.

(b) The magnetic media specifications, which are available upon request from the Department, are virtually identical to those adopted by the Internal Revenue Service or the Social Security Administration, as the case may be.

(c) The Commissioner may waive the requirements of this section if hardship is shown on a Form CT-8508 (Request for Waiver from Filing Connecticut Informational Returns on Magnetic Media). Such waiver request shall specify the period to which it applies and shall be subject to such terms and conditions regarding the method of reporting as may be prescribed by the Commissioner. In determining whether hardship has been shown, the principal factor to be taken into account shall be the amount, if any, by which the cost of filing forms on magnetic media in accordance with this section exceeds the cost of filing such forms on other media. Form CT-8508 shall be filed with the Department at least 45 days before the date on which persons are required to furnish information to the Department.

(d) If a waiver is granted, paper forms may be filed for that taxable year. Generally, if a waiver has been granted for federal tax purposes, a waiver shall be granted for Connecticut tax purposes. An approved waiver shall provide exemption from magnetic media filing for the current taxable year only. A new Form CT-8508 shall be submitted for each year a waiver is requested; however, a waiver shall generally not be granted on the same basis for succeeding years.

(e) For purposes of this section, "informational returns" means a duplicate of the "state copy" of federal Forms W-2 (reporting payment of Connecticut wages), W-2G (for winnings paid to resident individuals, even if no Connecticut income tax was withheld), 1099-MISC (for payments to resident individuals or, if the payments relate to services performed wholly or partly within Connecticut, payments to nonresident individuals, even if no Connecticut income tax was withheld), 1099-R (for payments or distributions to resident individuals, but only if Connecticut income tax was withheld) and 1099-S (for all Connecticut real estate transactions).

(Effective November 18, 1994.)