Certain small businesses in Connecticut are subject to the CT Pass-Through Entity Tax (PET) that CT enacted starting with tax year 2018. Businesses subject to this tax are partnerships,
S-corporations, and LLCs treated as partnerships for tax purposes.
This newly enacted law is intended to ease the burden on small business owners by helping them circumvent the new $10,000 annual cap on state and local tax deductions. The PET is paid at the business level rather than the personal level and is fully deductible from federal income taxes as a business expense, barring any change in federal tax law.
If your business return merited estimates, we prepared them for you and provided instructions on how to pay the estimates in the tax packet we prepared for you. PLEASE NOTE: Estimates must be paid online via the Taxpayer Service Center (TSC). You are not required to have a TSC account to pay online, but you will need your Federal EIN and CT Registration Number to make your estimate payments. Q2 2019 estimates are due on or before June 17, 2019.
If we did not prepare estimates for your business and you anticipate higher income for 2019 or if your 2018 return has not yet been completed, please be advised that quarterly estimates may be required. If you need help determining if and how much you should pay for your Q2 estimate, please contact our office.
If you have any questions, please do not hesitate to contact our office.