If you’ve received a notice from the Connecticut Department of Revenue Services, you may face additional charges on your tax return in the form of penalties. These extra costs can add up quickly and make things harder for people and businesses, especially those already having trouble with back taxes or money problems.
Fortunately, Connecticut has a formal process called penalty abatement. This process lets qualifying taxpayers ask for relief from specific penalties if they can show a good reason for not paying their taxes on time. The penalty waiver process may give you a second chance to fix your tax situation without too much financial stress if you missed a filing deadline, couldn't pay on time, or had something happen that was out of your control.
This guide is for regular taxpayers, small business owners, and anyone who needs help with the Connecticut Department of Revenue Services' penalty waiver request system (also called the Connecticut DRS or CT DRS). You will learn how penalties work, who can get help, what paperwork is needed, and how to fill out and send in Form DRS-PW.
By the end of this guide, you will know exactly what to do to get your tax debt paid off and get your finances back on track. Let’s begin with the basics—what tax penalties are and how they apply in Connecticut.
Tax penalties in Connecticut are extra fees that the Department of Revenue Services adds when people don't follow the law by filing their taxes, paying them on time, or sending payments correctly. Interest, which builds up on unpaid tax bills and cannot be waived by state law, is not included in these penalties.
Connecticut uses fines to get people to follow its tax laws on time and accurately. Individuals and businesses can be punished, and the total amount you owe can go up significantly. Even if you don't owe many taxes, the penalties for missing a deadline or filing incorrectly can be very high, especially if they add up over several tax periods or types.
The type and amount of the civil penalty assessed depend on the specific tax and the nature of the violation. For example, if you file your income tax return late but do not owe any taxes, you may face a flat $50 penalty. However, if you owe taxes and pay late, the penalty could be a percentage of your total tax liability.
Interest is just the cost of paying late, while penalties punish people who don't follow the rules. In Connecticut, any unpaid tax balance accrues interest at 1% per month until it is paid in full. Even if your request to waive the penalty is approved, the interest charges will still apply.
It is crucial to comprehend these distinctions prior to requesting penalty relief. You can only use the penalty abatement process for certain charges, which won't lower the amount of tax or interest you owe. Next, we'll look at what Connecticut law says about which penalties can be dropped and which can't.
The Connecticut Department of Revenue Services can't always drop all the penalties it gives out. The state will only look at a request for a penalty waiver if the penalty falls into a category that can be waived and the taxpayer meets specific requirements. It's essential to find out if the punishment you're facing is legal in Connecticut before you apply.
Connecticut lets people who break the law get out of paying fines for many common offenses, especially when the taxpayer has no control over the situation. Some of these are
Let's say you're a taxpayer who did everything right but missed a deadline for a valid reason, like a natural disaster or a medical emergency. In that case, you may qualify for penalty relief. In most cases, the state requires that the taxpayer acted reasonably and that the failure to comply was not due to willful neglect.
Specific penalties are specifically excluded from the abatement process under state law. These include:
If your penalty falls under any of these categories, your penalty waiver request will be automatically denied, regardless of the circumstances. Additionally, interest is not subject to waiver and will continue to accrue until the full tax balance is paid.
Verifying that your penalty is eligible for abatement is critical before submitting any forms or documentation. The following section will help you understand what the state considers “reasonable cause,” a key requirement for any successful request.
To receive a penalty waiver in Connecticut, you must demonstrate that your failure to comply with tax requirements was due to reasonable cause. This means that the circumstances surrounding your late filing or payment were beyond your control and that you acted responsibly and attempted to comply once the obstacle was removed.
The Connecticut Department of Revenue Services evaluates reasonable cause on a case-by-case basis, examining whether the taxpayer exercised ordinary business care and prudence in fulfilling their obligations. The taxpayer is burdened to prove the situation was reasonable and not a result of willful neglect or intentional disregard for the law.
The following are examples of situations that may constitute reasonable cause under Connecticut’s rules:
In all cases, you’ll need to provide supporting documentation that clearly shows what happened, when, and how it prevented you from complying with your tax responsibilities.
Connecticut DRS will generally deny penalty relief for the following reasons:
It is critical to be honest, specific, and thorough in your explanation. In the next section, we’ll guide you through the step-by-step process for preparing and submitting a penalty waiver request.
Suppose you believe you qualify for penalty relief due to reasonable cause. In that case, you must follow a formal process to submit your penalty waiver request to the Connecticut Department of Revenue Services. The state requires a specific form, supporting documentation, and a clear explanation of your circumstances. Below is a detailed roadmap to help you successfully prepare and submit your request.
Before beginning the application process, please ensure you meet the following baseline requirements:
Connecticut will not consider a request for a waiver if you have an outstanding balance or unfiled returns.
The strength of your penalty waiver request depends heavily on the documentation you submit. Depending on your circumstances, this may include:
All documents should be dated and related to the tax period.
To formally request relief, you must file Form DRS-PW, titled “Request for Waiver of Civil Penalty.” This form is available for download on the Connecticut DRS website.
When completing the form:
Incomplete or vague explanations will likely result in denial.
You can submit Form DRS-PW and accompanying documentation through any of the following channels:
Be sure to keep copies of everything you submit.
The Connecticut DRS reviews each penalty waiver request individually.
You’ll receive a written notice explaining whether your penalty was waived, partially waived, or denied. If additional information is required, respond quickly and thoroughly to avoid delays.
If your request is denied and you think it was a mistake, you can appeal to the Connecticut Superior Court.
Understanding how Connecticut evaluates reasonable cause can be easier in real-world scenarios. Below are several examples illustrating situations where the Department of Revenue Services approved a penalty waiver based on valid supporting documentation and a clear explanation of the events.
Scenario:
A sole proprietor responsible for filing her business tax return was unexpectedly hospitalized for emergency surgery just days before the due date. She remained in recovery for several weeks and was unable to manage her financial responsibilities during that period.
Resolution:
She submitted medical records and a completed Form DRS-PW, explaining the circumstances. She also showed that she filed and paid taxes as soon as she recovered. The Connecticut DRS granted the penalty relief, accepting her illness as reasonable cause.
Scenario:
A small business owner’s spouse, who handled all tax matters, passed away two weeks before the income tax deadline. The surviving spouse, unfamiliar with the tax process, missed the filing deadline while handling funeral and estate affairs.
Resolution:
He submitted a death certificate, explained the family situation, and filed his returns as soon as possible. The penalty was waived after the DRS reviewed the documentation and determined the death created a valid interruption in the ability to comply.
Scenario:
A business suffered a flood that destroyed all financial and business records, including receipts and accounting documents needed to complete the income tax return.
Resolution:
The taxpayer submitted insurance reports, photos of the flood damage, and letters from their accountant showing efforts to reconstruct records. The DRS accepted this as reasonable cause and waived the civil penalty.
Scenario:
A taxpayer submitted payment instructions to a CPA on time, but the CPA entered the wrong bank account number, causing the payment to fail without the taxpayer’s knowledge.
Resolution:
The taxpayer provided email correspondence and documentation showing that the correct information was provided in advance. The DRS recognized the taxpayer's reasonable actions and approved the waiver.
These examples reflect the importance of presenting clear, credible evidence tied directly to the same tax period in which the penalty was imposed. In the next section, we’ll outline common errors that often lead to penalty waiver denials—and how to avoid them.
While many taxpayers qualify for a penalty waiver, many requests are denied due to avoidable mistakes. Understanding these common pitfalls can help ensure that the Department of Revenue Services takes your request for penalty abatement in Connecticut seriously and properly evaluates it.
Connecticut law requires that all taxes and accrued interest be paid before your penalty waiver request is even considered. Submitting Form DRS-PW while you still owe back taxes or are on an unapproved payment plan will result in immediate denial.
Form DRS-PW requires detailed explanations of what prevented compliance during the relevant tax period. Leaving fields blank, submitting generic statements like “I forgot” or “I was too busy,” or failing to include key dates will weaken your request. Be specific, factual, and thorough.
A well-written explanation is not enough. You must include documentation that supports your claim—medical records, death certificates, emails, legal notices, or insurance reports. The absence of documents raises doubts about the credibility of your request.
Some taxpayers mistakenly submit Form APL-002 (used to protest tax assessments) instead of Form DRS-PW (used to request civil penalty waivers). This clerical error can delay your request or result in an outright rejection.
The state will not consider a waiver if the penalty is related to an audit finding, fraud, or willful disregard of the law. Filing a request for a penalty not eligible for relief wastes time and resources.
After submitting your request, you must respond promptly if the DRS asks for additional information. The DRS may close or deny your request if you neglect or postpone follow-up communication.
You improve your chances of securing penalty relief by avoiding these errors and presenting a well-documented and honest explanation. Next, we’ll explore additional options for resolving Connecticut back taxes if penalty abatement alone isn’t enough.
If penalty abatement alone doesn't fully resolve your tax situation, the Connecticut Department of Revenue Services offers several other programs to help taxpayers manage their debt. These options may be beneficial if you’re dealing with a large amount due, cannot pay your full balance, or need help navigating complex liabilities across multiple tax periods.
If you cannot pay your full tax liability upfront, you may qualify for a payment plan. Connecticut allows taxpayers to spread payments out over time in monthly installments. As long as you stay current on your payments, these agreements help prevent imposing new penalties.
Remember that you may still be eligible to submit a penalty waiver request if you are current on an approved installment plan.
Connecticut also offers a version of the IRS Offer in Compromise program. This allows eligible taxpayers to settle their back taxes for less than the total amount owed if one of the following applies:
Offers in compromise are rarely accepted and require extensive financial disclosures. However, they can be a valuable option for taxpayers facing long-term economic hardship.
Innocent Spouse Relief
You may qualify for relief if you filed a joint income tax return and believe the penalty resulted from your spouse’s actions. This exception applies when one spouse was unaware of an understatement or improper claim that led to a tax debt.
Relief is not automatic—you’ll need to file a formal request and provide documentation that you had no knowledge of the error and did not benefit from it.
Each option involves its own eligibility rules and procedures. In the next section, we’ll simplify everything into a checklist to help you stay organized and increase your chances of a successful resolution.
Before submitting your penalty waiver request to the Connecticut Department of Revenue Services, gather the correct information, complete the proper forms, and ensure your case is well-supported. Use this checklist to stay organized and increase the likelihood of a successful outcome.
☐ Verify that the penalty is eligible for waiver under Connecticut law.
☐ Pay all taxes and interest related to the penalty.
☐ Ensure all tax returns are filed for the applicable tax period.
☐ Medical records, doctor’s letters, or hospital discharge summaries (if illness-related)
☐ Death certificate or obituary (if death in the family affected compliance)
☐ Insurance reports or police reports for natural disasters, fires, or accidents
☐ Emails or letters from your tax attorney, CPA, or preparer showing your attempt to comply
☐ Bank statements, payment confirmations, or error messages showing filing/payment attempts
☐ Correspondence with Connecticut DRS that supports your timeline and actions
☐ Complete Form DRS-PW in full (no blank or vague responses)
☐ Include a clear explanation of the events that prevented compliance
☐ Provide specific dates and relate them directly to the same tax period in which the penalty was imposed
☐ Sign the form under penalty of false statement
☐ Attach all supporting documentation
☐ Choose a submission method: myconneCT (online), mail, or fax
☐ Keep copies of all forms and documents for your records
☐ Respond promptly if DRS contacts you for additional information
☐ Monitor for your written decision notice
Once you’ve completed these steps, your penalty waiver request will be ready for review. Next, we’ll answer the most frequently asked questions about the process to help you avoid confusion and delays.
No, Connecticut requires fully paying all taxes and interest before considering any penalty waiver request. Your request will not be processed if you still owe taxes or are behind on payments. However, if you are current on an approved installment plan and remain in excellent standing, the Department of Revenue Services may consider your request depending on your situation.
The timeline for receiving a decision varies depending on your case and the penalty amount. For penalties under $1,000, the Commissioner typically decides within several weeks. It may take longer for the Penalty Review Committee to review your request for larger amounts. You’ll receive a written notice either way, and delays may occur during peak processing times.
You must complete and submit Form DRS-PW, officially titled “Request for Waiver of Civil Penalty.” This form is available on the Connecticut DRS website and must include detailed explanations and supporting documentation. Be sure to complete every section thoroughly, sign under penalty of false statement, and attach all required materials to avoid delays or automatic denial of your request.
No, interest is never waived under Connecticut law, even if your penalty is successfully abated. Interest continues to accrue at 1% per month on any unpaid tax balance until it is fully paid. The penalty waiver process only applies to civil penalties—not interest—so you should plan to pay accrued interest regardless of your waiver outcome.
You can request abatement for multiple tax periods, but you must provide a separate explanation. If the same circumstances affected more than one period, describe how those events impacted each tax period individually. Supporting documentation should clearly show a timeline that connects your reasonable cause to each penalty imposed across different tax periods.
The Department of Revenue Services will issue a written notice explaining the decision if it denies your request. You can appeal the denial to the Connecticut Superior Court, usually within one month of the notice date. Before appealing, ensure all your documentation is complete, and consider seeking help from a tax attorney if needed.
Hiring a tax professional is not required, but it can be helpful in complex cases. Most individuals can complete the process using Form DRS-PW and the instructions provided. If your case involves hefty penalties, multiple tax years, or complicated facts, working with a CPA or tax attorney can improve your chances of success and ensure proper documentation.
Schedule your free, confidential tax relief review today.
Copyright © 2025 Get Tax Relief Now
