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CT alerts taxpayers to withholding glitch

The state tax collector is alerting taxpayers to a payroll software glitch that could affect the amount of state income tax withheld from their paychecks.

The Connecticut Department of Revenue Services (DRS) said Thursday that it recently became aware of limitations in software employers rely on for automated payroll processing that may impact income tax withholding for certain Connecticut taxpayers.

Commissioner Kevin B. Sullivan says the problem affects taxpayers who have requested on Form CT-W4 that additional income tax be withheld from their paychecks.  The state’s new withholding schedules took effect in May.

DRS is recommending taxpayers make estimated payments to ensure they are covered.

To further help, DRS making available now the 2011 Estimated Income Tax Worksheet and the updated 2011 Income Tax Calculation Schedule available online at www.ct.gov/drs.

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 However, Sullivan vows that any taxpayers who fall short due to the glitch won’t be hit with penalties or interest on underpayments.

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