Recomputation of Connecticut income tax

(a) The assessment of Connecticut income tax may be made at any time if a taxpayer or employer fails to report a change or correction or fails to file an amended Connecticut income tax return required under Section 12-727(b) of the general statutes with respect to: (1) a federal change or correction or an amended federal income tax return increasing the taxpayer's federal income; (2) a federal change or correction which is treated in the same manner as if it were a deficiency for federal income tax purposes; (3) a federal change or correction or an amended federal return of income tax withheld increasing the amount required to be deducted and withheld from wages for federal income tax withholding purposes; or (4) the disallowance, in whole or in part, of a taxpayer's claim for credit or refund of federal income tax. (b) The assessment of Connecticut income tax, if not deemed to have been made upon the filing of the report or amended Connecticut income tax return, may be made at any time within three years after such report or amended return is filed, where a taxpayer or employer reports a change or correction or files an amended Connecticut income tax return required under Section 12-727(b) of the general statutes with respect to: (1) a federal change or correction or an amended federal income tax return increasing the taxpayer's federal income; (2) a federal change or correction which is treated in the same manner as if it were a deficiency for federal income tax purposes; (3) a federal change or correction or amended federal return of income tax withheld increasing the amount required to be deducted and withheld from wages for federal income tax withholding purposes; or (4) the disallowance, in whole or in part, of a taxpayer's claim for credit or refund of federal income tax. The amount of such an assessment may not exceed the increase in Connecticut income tax attributable to the federal change or correction. The provisions of this subsection do not affect the time within which or the amount for which an assessment may otherwise be made under the Income Tax Act. (c) For purposes of this section, the term "federal income" means (1) federal adjusted gross income or federal alternative minimum taxable income of an individual; and (2) federal taxable income of a trust or estate prior to deductions relating to distributions to beneficiaries or federal alternative minimum taxable income of a trust or estate. (d) While this section pertains to Section 12-727(b) of the general statutes, for purposes of supplementary interpretation, as the phrase is used in Section 12-2 of the general statutes, the adoption of this section is authorized by Section 12-740(a) of the general statutes.